Cyprus Airways demands compensation for Turkey ban
28 / 02 / 2010
CYPRUS Airways (CY) is demanding compensation from the Cypriot government due to it being unable to operate to Turkey or through its airspace.
The carrier’s chief executive officer, Kikis Lazarides, said: “[Turkey] won’t let us approach their ports, their airports or airspace. This is costing us €3 million a year.
“We believe the government has an obligation to compensate us. The government, if it so wishes, can get [a resolution] through the European Union.”
Cyprus Air is majority owned by the state and lost €3.2 million (US$4.4 million) in 2009, compared to a €1.74 euro million net profit in 2008. Revenue fell 20 per cent last year and
Lazarides said that there had been a “vertical drop” in traffic meaning the company was struggling to survive, despite it trying to modernise.
He added the carrier is planning on increasing its flights to Beirut, Brussels, Dublin, Kiev, Moscow and Tel Aviv.
“The group has adequate liquidity to meet any commitments which may arise, without the need to resort to short-term banking facilities,” the airline said.