Cyprus Airways breaks even on state bailout

Cyprus Airways broke even in 2010, lifted by a state bailout given to the cash-strapped national carrier because of a ban in flying over Turkey.
The national carrier, which is majority controlled by the state, reported a 215,000 euro net profit for 2010 after a 3.28 mln euro loss in 2009. The results were indicative, the airline said.
Parliament last week approved 20 mln euros in aid to the airline. It met a long-standing demand of the company, which says it is saddled with higher costs compared to its main competitors because of a Turkish flight ban.
Cyprus Airways reported 18.7 mln euros as "other income", representing compensation from the state for a ban from flying over Turkey from 2004 to 2009, and the sale of an aircraft.
Its board had initially planned to meet to approve results on February 25, a week before parliament approved the cash.
Turkey and Cyprus do not have diplomatic relations. Cypriot carriers heading to north and eastern Europe have to circumvent Turkish air space, adding to fuel and air bills.
For the year, income fell 4.5% while the cost of jet fuel rose 25%, the airline said.
The island's finance minister had on February 21 said the carrier could go bust without the aid.
Airline staff recently agreed to pay cuts and a number are being made redundant under a scheme to save about 30 mln euros in annual costs.