PARLIAMENT wants the government to replace Cyprus Airways (CY) board members and draft a new reliable restructuring plan within three months before it releases the full €31.5 million sought to raise the ailing national carrier’s capital, it emerged yesterday.

Speaking after discussion of the matter before the House Finance Committee, its chairman Nicolas Papadopoulos said a “majority has formed” favouring a string of conditions parliament will lay down before it releases the full amount.

The government is expected to ask parliament today to approve the €31.5 million pledged by the state.

But lawmakers want the government to replace the eight members it appoints on the airline’s board, as well as draft a new restructuring plan in three months.

Lawmakers also want the communications ministry to review an incentives agreement signed with low-cost airline Ryanair, after CY complained it was unfair.

“We hope that all these conditions will be met by the end of October so that the whole amount can be released,” Papadopoulos said. 

He added that for the time being parliament will release €15 million.

Papadopoulos said Cyprus needs a national carrier and supporting the company was a priority for parliament.

It would not “be in the form of a blank cheque”, he said.

Last week, Canadian conglomerate Triple Five sent Cyprus Airways a letter reiterating its interest in acquiring a majority stake in the state-controlled airline.

However, Triple Five would want the restructuring plan to be implemented before it makes a bid.

CY has been getting by through government support and cash injections in the form of assistance for losses incurred due to a Turkish airspace ban on Cypriot aircraft. Last year it was given €20 million for losses incurred between 2004 and 2010 and this year it got €5.3 million, representing the extra fuel cost to avoid Turkish airspace. 

Cyprus Mail