Government flags Cyprus Airways-Eurocypria merger to beat the axe
Cyprus' Government stated it wants to merge Cyprus Airways and Eurocypria to avoid a possible failure of one carrier and prevent further losses as LCCs encroach on their networks (Reuters, 02-Sep-2010). Cyprus Airways is majority owned by the government, while Eurocypria is wholly government owned. Cyprus Airways reported a pre-tax loss of EUR25.1 million over 1H2010. Any merger would require regulatory approval from the EU.
Cyprus Finance Ministry: “The risk of these two companies closing if a merger does not take place is very possible. Both companies have serious financial problems so if there is no merger, or restructure, there is a possibility we could be left without a Cypriot airline," Charilaos Stavrakis, Finance Minister. Source: Reuters, 02-Sep-2010.