GERALD BUTT / CYPRUS
Cyprus Airways plans to launch a Greek subsidiary, Hellas Jet, by April next year.
The airline, to be based in Athens, aims to attract tourist traffic to Greece "from busy European airports like Paris, Brussels, Frankfurt and London, while keeping costs as low as possible," says Cyprus Airways. Hellas Jet is expected to be launched with three leased Airbus A320s or Boeing 737s, with the option of acquiring a fourth aircraft later.
The Cypriot flag carrier said last year it was considering setting up a subsidiary in Greece after withdrawing from a bid for 51% of debt-burdened Olympic Airways. The decision is, in part, a move to offset the effects of the Cypriot government's plan to deregulate air routes from 1 January next year.
The government owns 68% of Cyprus Airways. The airline says this factor is hampering its plans to compete when deregulation takes effect. "It is inconceivable to expect Cyprus Airways to compete on a level playing field with private carriers with 68% of the airline in state hands," says chairman Haris Loizides. "Private airlines must be happy…already the authorities are issuing a raft of permits to destinations we can't fly to."
Source: Flight International
