Tuesday 6 August 2013

Cyprus asks EU for permission to bail out Cyprus Airways............

.........and the answer must be a flat "No".

The Cyprus Government is said to be asking to pump 17 million Euros into its ailing national airline.

Why should it? Cyprus doesn't need its own airline to (expensively) bring in foreign tourists or business travellers. If the company were to disappear, any capacity shortfalls or destinational points worth serving would quickly be covered by other airlines. Cypriot taxpayers would not have to stump up a bean and the money saved could be usefully directed elsewhere in the struggling national economy.

The EU would be much more convinced of  Cyprus' determination to get to grips with its structural economic defects by the government standing aside and leaving the airline to its fate than it will be by a plea to be allowed to keep this company alive. If it is going to stay in business, Cyprus Airways needs to solve its own problems, make itself competitive and attractive to the customers. Above all  it must independently raise its own revenue and finance just as any non public sector company would. The staff have their own role to play too.

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