The government is determined to convince the European Commission that is implementing a comprehensive restructuring plan for the troubled national air carrier, Cyprus Airways, Communication and Works Minister Tasos Mitsopoulos has told the CNA.

A ministerial meeting, called by the President of the Republic, was held on Thursday with the participation of the Finance Minister, the Communications Minister, the Minister of Labour and the Minister of Commerce and examined issues related to Cyprus Airways.

“The Government will work in close cooperation with the Board of the company to convince the European Commission that for the first time we are implementing a serious and comprehensive restructuring plan for Cyprus Airways, aimed at putting the company on the path of recovery in 2014 and why not render it profitable”, Mitsopoulos told the CNA.

“This is not an easy battle because unfortunately we have lost our credibility” said Mitsopoulos, noting that many restructuring plans had been submitted to the EU.

The Communications Minister noted that the implementation of the restructuring plan during the past 3-4 months has brought positive results for Cyprus Airways with drastic reduction of its losses compared with the previous year.

He said that the company has already gained time to move towards a plan B in case the European Commission’s response to the restructuring plan is negative, but added that the work that has been done has already left positive impressions.

Brussels is expected to rule whether the company’s restructuring plan is considered state subsidy and is therefore permissible or not.

Cyprus Airways posted losses of €55.8m for 2012, doubling its 2011 losses of €23.9m.

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