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Cyprus Airways Cost of closure

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Cyprus Airways Cost of closure

Postby Paphitis » Fri Apr 03, 2015 4:07 pm

DT mou,

did your friend calculate the true cost of closure of Cyprus Airways?

Is this dude a Finance person? If so, please name and shame! :lol:
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Re: Cyprus Airways Cost of closure

Postby Paphitis » Mon Apr 13, 2015 2:56 am

DT mou, boulaki mou!

I got to hand it to you mate! Your good friend that closed down Cyprus Airways knew exactly what he was doing! What a friggin genius! 8)

He promised Cyprus a knew Cyprus Airways and he delivered mate!

Cyprus now has its new Airline. Aegean Airlines has just opened its new hub at Larnaca and has taken delivery of all of Cyprus Airways A320 aircraft.

Here is the proof:

Image

Yep, all Cyprus Airways aircraft have been painted in Aegean livery.

Works completed by Airborne Colours Pty Ltd in East Midlands.

Far out man! What a genius! 8)

I wonder how much Aegean paid for the Cyprus Airways takeover???? :?
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Re: Cyprus Airways Cost of closure

Postby CBBB » Mon Apr 13, 2015 7:05 am

Paphitis wrote:DT mou,

did your friend calculate the true cost of closure of Cyprus Airways?

Is this dude a Finance person? If so, please name and shame! :lol:


This costing, which was compiled by CY unions, is absolute rubbish!!!

Income Tax from Employees. This would only be the Government paying the Government.
Government share from Airport taxes. Only if passenger numbers went down, which they haven't, they have gone up.
VAT Collection. As above.
Compensation to Hermes Airports for Occupied airport traffic. How is that a cost in closing down Cyprus Airways?
Susidising of new routes from foreign airlines. Peanuts compared to the costs of subsidising CY!
Provident Fund Government contribution. It was a cost to the taxpayer regardless of closing CY, but it would have been more if they were still running!
Compensation to employees. They shouldn't have received that, people in the private sector don't get that sort of compensation.

What is left on the list is a lot less than keeping it going!
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Re: Cyprus Airways Cost of closure

Postby Paphitis » Mon Apr 13, 2015 7:43 am

Actually no! The projected losses over the next 2 years would have been in the single digit millions.

Profitability could be restored within 3 years if the Government followed the restructure plan from the private French or German firm (can't remember who).

The entire operation was a corrupt mess right down to the leasing of aircraft from the A330 and A320 from firms that were up to a million Euros per annum above market. Then of course the majority of the losses were from the Hellas Jet and EuroCypria operations.

As you know, the airline was used as a cash cow much like some CNG arms acquisitions are. Some get paid and quite handsomely at that and the people have no clue about the shit that goes down. Those that have done well out of it might look for other scape goats, like accusing pilot salaries and fuel costs which are actually factored into an airline ticket. Many airlines charge a fuel levy.

Cyprus Airways had 6 aircraft when it folded at just under 600 employees. Do the sums and compare that to other airlines. Now obviously some consideration needs to apply to economic scaling. A small company will always have more employees per aircraft or per seat because of all the other infrastructure associated with running an airline but not 600 employees. Cyprus Airways or an airline of similar size should have about 300 to 400 employees. 400 is absolute max, and the airline can run efficiently with under 300.

Air Malta is a useful comparison to us here. They have 10 aircraft (A319/A320 family) which are all leased.
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Re: Cyprus Airways Cost of closure

Postby Paphitis » Mon Apr 13, 2015 8:05 am

Air Malta just recently went through a restructure.

In 2011, it had losses of 35 million.
In 2012, losses of 24 million.
In 2013, losses of 13 million.

In 2014, it has projected a profit. In fact, it has already reported a profit for the first half of the year.

They have about 600 employees for 10 aircraft.

So the question I have, and every one in Cyprus should be asking is, why is it possible for Malta and not us?
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Re: Cyprus Airways Cost of closure

Postby B25 » Mon Apr 13, 2015 9:28 am

Paphitis wrote:So the question I have, and every one in Cyprus should be asking is, why is it possible for Malta and not us?


That's easy Paphiti, their corruption charges are much less than ours. Sadly CA was used and abused by its staff and management. I know CA staff that would fly free anywhere in the world, send 00's of kgs of baggage with no cost and not to mention favours for family members. The result was inevitable as we have seen. This is just representative of the Cypriot culture, just look at all the recent corrupt nature of all the government organs. It makes me sick to the stomach just thinking about it. Gamo to keraton tous mesa.
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Re: Cyprus Airways Cost of closure

Postby miltiades » Mon Apr 13, 2015 11:13 am

Aegean will NOT be getting my custom !!
Booking a flight on may 2nd to May 13th. Aegean, arriving at 3.45 am !!! charge £242.00
where as Easyjet arriving at a decent time 1.45 pm have charged £114.00

Price dif a staggering £128 or 112% more!!
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Re: Cyprus Airways Cost of closure

Postby Paphitis » Mon Apr 13, 2015 3:52 pm

B25 wrote:
Paphitis wrote:So the question I have, and every one in Cyprus should be asking is, why is it possible for Malta and not us?


That's easy Paphiti, their corruption charges are much less than ours. Sadly CA was used and abused by its staff and management. I know CA staff that would fly free anywhere in the world, send 00's of kgs of baggage with no cost and not to mention favours for family members. The result was inevitable as we have seen. This is just representative of the Cypriot culture, just look at all the recent corrupt nature of all the government organs. It makes me sick to the stomach just thinking about it. Gamo to keraton tous mesa.


Normally, IATA airline staff are entitled to what is called ID95. This is basically free travel anywhere around the world with the exception of taxes which must be paid.

However, such a worlkplace right is limited to 2 tickets per annum and only offered subject to seat availability. These rights are also extended to immediate family such as spouse and children, not to extended family.

They are also offered on any airline around the globe. For instance, a CyAir worker is entitled to ID95 on QANTAS, BA, Lufthansa and even Turkish Airlines or any other IATA member.

The rule also applies for a QANTAS pilot who is on vacation in Cyprus. The Australian pilot or worker is entitled to free travel on CA.

These are just workplace rights. It's not corruption I'm afraid.

Airlines usually have capacity to accommodate this around the world. We are talking chicken feed here.

Other things like the leading of A330 aircraft from a dubiously Irish registered leasing firm which had to lease the aircraft to begin with and added a mark up are the kinds of things that need to be investigated. The findings will schock the people and heads will roll for that one.
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Re: Cyprus Airways Cost of closure

Postby Paphitis » Mon Apr 13, 2015 4:00 pm

miltiades wrote:Aegean will NOT be getting my custom !!
Booking a flight on may 2nd to May 13th. Aegean, arriving at 3.45 am !!! charge £242.00
where as Easyjet arriving at a decent time 1.45 pm have charged £114.00

Price dif a staggering £128 or 112% more!!


I don't think Aegean are in the CHAV market.
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Re: Cyprus Airways Cost of closure

Postby miltiades » Mon Apr 13, 2015 4:11 pm

Paphitis wrote:
miltiades wrote:Aegean will NOT be getting my custom !!
Booking a flight on may 2nd to May 13th. Aegean, arriving at 3.45 am !!! charge £242.00
where as Easyjet arriving at a decent time 1.45 pm have charged £114.00

Price dif a staggering £128 or 112% more!!


I don't think Aegean are in the CHAV market.

Dont be so bloody stupid. Easyjet is a modern airline with almost new aircraft and a 100% safety record. Give me a reason why I would pay more than twice as much, unlesss you think that Im fucking stupid like you!!
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