Cyprus Airways Spins Off Charter Unit

Cypriot flag carrier Cyprus Airways has sold charter subsidiary Eurocypria to the government for CYP13.45 million pounds (USD$29.3 million) as part of a restructuring.

The government, which owns close to 70 percent of Cyprus Airways, has said the acquisition and spinning off of Eurocypria from the main airline unit was designed to create a second, debt-free scheduled carrier.

Cyprus Airways, burdened by fleet renewal costs and cheaper competition, posted a pretax loss of CYP25.03 million (USD$54.6 million) in 2005 and required an EU approved and government-backed financial bailout last year.

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