Eurocypria Airlines
Encyclopedia
Eurocypria Airlines Limited was a charter airline based in Larnaca
, Cyprus
, owned by the government of Cyprus, operating mostly chartered flights. Its main base was Larnaca International Airport
, with a secondary base at Paphos International Airport
. On 4 November 2010 it was announced that the airline will file for bankruptcy and will cease all flights by 13 November. Finally, all flights were suspended by decision of the Board of Directors on 4 November 2010.
Eurocypria was established on 25 March 1992 as a wholly owned subsidiary of Cyprus Airways
, as the first Cyprus based charter airline. Operations began on 12 June 1992 with two new Airbus A320
aircraft. Two more were added later. Since 2001, the airline has operated scheduled services from Cyprus, and charter flights.
In 2003 Eurocypria replaced its Airbus fleet with four new Boeing 737-800
aircraft. Three of its former Airbus A320s were transferred and operated by Cyprus Airways
. Two additional units of the same type and configuration were added in 2006.
On 28 June 2006, Cyprus Airways sold the share capital of Eurocypria to the Government of Cyprus for CY£13,425,000. The charter arm was sold mostly due to the poor financial situation at Cyprus Airways and because it was one of the few ventures of Cyprus Airways Group to make a profit.
The airline has a long history of operating flights on behalf of Egyptian carrier AMC Airlines
between Egypt
and Europe
.
Yet the approval of the cash injection for Eurocypria was, as the 'Cyprus Mail' reported on 19 February 2010, "unlikely to be the final word". Anastasios Antoniou LLC,http://www.antoniou.com.cy a Law Firm based in Limassol, filed an official complaint on 17 February 2010 with the European Commission regarding the proposed financing of Eurocypria on behalf of a client who wished to remain anonymous. As national daily 'Phileleftheros' reported on 19 February 2010 - based on its own sources - the complainant could be a competitor in the relevant market that has unsuccessfully attempted to enter the market. In a statement issued on 19 February 2010 in response to the media commentary, Anastasios Antoniou LLC explained that the capital injection on the part of the Republic of Cyprus is likely to be in violation of the applicable EU legislation regarding State Aid. The Firm pursued its complaint before the European Commission further in the following months, also filing a request for interim measures on behalf of the Commission pursuant to the provisions of Council Regulation (EC) No 659/1999.
In June 2010, it was unveiled that two reports, prepared in February 2010 before the capital injection had been approved, were opposed to the bailout. Made public by Finance Minister Charilaos Stavrakis on 10 June 2010, the two reports created a series of debates and rows with the island’s political parties, who felt they were misled into approving the money. The first report, carried out by the Accountant-general on February 3, proposed a strict implementation of Eurocypria’s business plan to reinforce its profit-making abilities. Meanwhile, it was proposed that a strategic investor be found. Failure to do so by mid 2010, it added, would lead to Eurocypria going bankrupt, in combination with some of its human and material resources being absorbed by national carrier Cyprus Airways. According to the Accountant-general, this would reduce the cost of bankruptcy from €84 million to €55 million. The second report - carried out by technocrats at the Finance Ministry and Planning Office – contradicted Finance Minister Charilaos Stavrakis’ claims that the reports had nothing to do with the €35 million injection, as its conclusions were centred on the specific fund.
In September 2010, Minister of Finance Mr Stavrakis announced that a possible merge of operations between Cyprus Airways and Eurocypria Airlines was under consideration, in an attempt to staunch losses. These considerations were geared, after the disclosure of the 1H2010 troubled financial results of Cyprus Airways Ltd, in which the Government is the major shareholder.European Union rejected this possibility and eurocypria ceased operations on November 2010.
Eurocypria Airlines fleet consisted of the following aircraft as at 1 November 2010:
Eurocypria's aircraft were named after a wind and each featured a differently colored tailfin
.
On July 2010, the average age of Eurocypria's fleet was 6.1 years.
On 3 September 2010, Eurocypria pilots went on strike due to the government's proposal of reducing Eurocypria's fleet to 4 aircraft in 2011. Finally, all operations ceased on 4 November 2010.
Larnaca
Larnaca, is the third largest city on the southern coast of Cyprus after Nicosia and Limassol. It has a population of 72,000 and is the island's second largest commercial port and an important tourist resort...
, Cyprus
Cyprus
Cyprus , officially the Republic of Cyprus , is a Eurasian island country, member of the European Union, in the Eastern Mediterranean, east of Greece, south of Turkey, west of Syria and north of Egypt. It is the third largest island in the Mediterranean Sea.The earliest known human activity on the...
, owned by the government of Cyprus, operating mostly chartered flights. Its main base was Larnaca International Airport
Larnaca International Airport
Larnaca International Airport is an international airport located southwest of Larnaca, Cyprus. Larnaca International Airport is Cyprus' main international gateway and the larger of the country's two commercial airports, the other being Paphos International Airport on the island's southwestern...
, with a secondary base at Paphos International Airport
Paphos International Airport
-Public transport:A bus serviceis available from the airport to Karavella station in Paphos where one may change bus to other destinations in the island. Information regarding these buses is available at .-External links:*...
. On 4 November 2010 it was announced that the airline will file for bankruptcy and will cease all flights by 13 November. Finally, all flights were suspended by decision of the Board of Directors on 4 November 2010.
History
Cyprus Airways
Cyprus Airways is the national airline of Cyprus, a public limited company with its head offices located in the capital of the island, Nicosia. It operates scheduled services to 41 destinations in Europe, the Middle East and the Gulf. It flies from both airports of the island, Larnaca and Paphos,...
, as the first Cyprus based charter airline. Operations began on 12 June 1992 with two new Airbus A320
Airbus A320
The Airbus A320 family is a family of short- to medium-range, narrow-body, commercial passenger jet airliners manufactured by Airbus Industrie.Airbus was originally a consortium of European aerospace companies, and is now fully owned by EADS. Airbus's name has been Airbus SAS since 2001...
aircraft. Two more were added later. Since 2001, the airline has operated scheduled services from Cyprus, and charter flights.
In 2003 Eurocypria replaced its Airbus fleet with four new Boeing 737-800
Boeing 737
The Boeing 737 is a short- to medium-range, twin-engine narrow-body jet airliner. Originally developed as a shorter, lower-cost twin-engine airliner derived from Boeing's 707 and 727, the 737 has developed into a family of nine passenger models with a capacity of 85 to 215 passengers...
aircraft. Three of its former Airbus A320s were transferred and operated by Cyprus Airways
Cyprus Airways
Cyprus Airways is the national airline of Cyprus, a public limited company with its head offices located in the capital of the island, Nicosia. It operates scheduled services to 41 destinations in Europe, the Middle East and the Gulf. It flies from both airports of the island, Larnaca and Paphos,...
. Two additional units of the same type and configuration were added in 2006.
On 28 June 2006, Cyprus Airways sold the share capital of Eurocypria to the Government of Cyprus for CY£13,425,000. The charter arm was sold mostly due to the poor financial situation at Cyprus Airways and because it was one of the few ventures of Cyprus Airways Group to make a profit.
The airline has a long history of operating flights on behalf of Egyptian carrier AMC Airlines
AMC Airlines
AMC Airlines is a charter airline based in Cairo, Egypt. It operates charter flights from Egypt's tourist destinations to Europe, regular charters to the Middle East as well as domestic flights....
between Egypt
Egypt
Egypt , officially the Arab Republic of Egypt, Arabic: , is a country mainly in North Africa, with the Sinai Peninsula forming a land bridge in Southwest Asia. Egypt is thus a transcontinental country, and a major power in Africa, the Mediterranean Basin, the Middle East and the Muslim world...
and Europe
Europe
Europe is, by convention, one of the world's seven continents. Comprising the westernmost peninsula of Eurasia, Europe is generally 'divided' from Asia to its east by the watershed divides of the Ural and Caucasus Mountains, the Ural River, the Caspian and Black Seas, and the waterways connecting...
.
Bailout
It was announced on 19 February 2010 that the Cyprus Government would inject €35m into Eurocypria's capitalization, to enable the airline to pay off €28m of owed debt and invest in the airline's future. Cyprus Airways stated Eurocypria should shut down as "a small island cannot withstand two state-owned airlines and if they're not shut down, we might both go bust", but the government declined this prospect and the House of Representatives went ahead with the bailout.Yet the approval of the cash injection for Eurocypria was, as the 'Cyprus Mail' reported on 19 February 2010, "unlikely to be the final word". Anastasios Antoniou LLC,http://www.antoniou.com.cy a Law Firm based in Limassol, filed an official complaint on 17 February 2010 with the European Commission regarding the proposed financing of Eurocypria on behalf of a client who wished to remain anonymous. As national daily 'Phileleftheros' reported on 19 February 2010 - based on its own sources - the complainant could be a competitor in the relevant market that has unsuccessfully attempted to enter the market. In a statement issued on 19 February 2010 in response to the media commentary, Anastasios Antoniou LLC explained that the capital injection on the part of the Republic of Cyprus is likely to be in violation of the applicable EU legislation regarding State Aid. The Firm pursued its complaint before the European Commission further in the following months, also filing a request for interim measures on behalf of the Commission pursuant to the provisions of Council Regulation (EC) No 659/1999.
In June 2010, it was unveiled that two reports, prepared in February 2010 before the capital injection had been approved, were opposed to the bailout. Made public by Finance Minister Charilaos Stavrakis on 10 June 2010, the two reports created a series of debates and rows with the island’s political parties, who felt they were misled into approving the money. The first report, carried out by the Accountant-general on February 3, proposed a strict implementation of Eurocypria’s business plan to reinforce its profit-making abilities. Meanwhile, it was proposed that a strategic investor be found. Failure to do so by mid 2010, it added, would lead to Eurocypria going bankrupt, in combination with some of its human and material resources being absorbed by national carrier Cyprus Airways. According to the Accountant-general, this would reduce the cost of bankruptcy from €84 million to €55 million. The second report - carried out by technocrats at the Finance Ministry and Planning Office – contradicted Finance Minister Charilaos Stavrakis’ claims that the reports had nothing to do with the €35 million injection, as its conclusions were centred on the specific fund.
In September 2010, Minister of Finance Mr Stavrakis announced that a possible merge of operations between Cyprus Airways and Eurocypria Airlines was under consideration, in an attempt to staunch losses. These considerations were geared, after the disclosure of the 1H2010 troubled financial results of Cyprus Airways Ltd, in which the Government is the major shareholder.European Union rejected this possibility and eurocypria ceased operations on November 2010.
Possible New Airline
It was announced in December 2010 that Eurocypria may be 'back in the air' in early 2011, under a different brand name. The company has received interest from Cypriot, Greek and Russian investors to take over operations, fleet and routes. Eurocypria's demise isn't as easy as first thought, with Cyprus Airways axing routes due to losses from poor service and high ticket prices and no other airline based in Cyprus. It had an outstanding reputation and customer service, as well as providing routes to many destinations not served by other carriers.Destinations
All flights have been suspended on 4 November 2010 and the company entered liquidation by decision of the Board of Directors.Fleet
| Aircraft | In Fleet | Passengers | Names | Notes |
|---|---|---|---|---|
| Boeing 737-800(WL) | 6 | 189 | Eypos, Zephyros, Levantes, Grecos, Notos, Maistros |
1 leased from Sunwing Airlines Sunwing Airlines Sunwing Airlines Inc. is an airline headquartered in Toronto, Ontario, Canada, offering scheduled and chartered services to Canada, the United States, Mexico, the Caribbean, Europe, Central America, South America as well as domestic services during the summer season.It is a subsidiary of Sunwing... |
Eurocypria's aircraft were named after a wind and each featured a differently colored tailfin
Vertical stabilizer
The vertical stabilizers, vertical stabilisers, or fins, of aircraft, missiles or bombs are typically found on the aft end of the fuselage or body, and are intended to reduce aerodynamic side slip. It is analogical to a skeg on boats and ships.On aircraft, vertical stabilizers generally point upwards...
.
On July 2010, the average age of Eurocypria's fleet was 6.1 years.
On 3 September 2010, Eurocypria pilots went on strike due to the government's proposal of reducing Eurocypria's fleet to 4 aircraft in 2011. Finally, all operations ceased on 4 November 2010.