Cyprus Airways is to sell 49% of its Eurocypria charter subsidiary to two northern European tour operators to counter competition from pan-European tour groups.
Cyprus Airways general manager Christos Kyriakides says the airline is in advanced talks with two independent tour operators, one in the UK, the other in "continental Europe", to take a stake in the loss-making charter arm. Kyriakides wants to "secure Eurocypria's business following the creation of tour group affiliations" such as MyTravel, Thomas Cook and TUI. Talks are likely to end by the second quarter, he adds.
The investment will also free operating capital for the airline's new venture in Greece. Hellas Jet will use three leased Airbus A320s to launch services in May from Athens to Brussels, London, Paris and either Frankfurt Main or Munich, in a bid to offer Greek business travellers an alternative to Olympic Airways.
Source: Flight International
