in Cyprus Today - 18/11/2009

malsancak


Joined: 23/08/2009
Posts: 2874

Message Posted:
18/11/2009 15:43

"'Bail us out, or we can't survive' - CTA is asking the government to write off debts caused by the previous management. Apparently the company has $47m capital and yet it cannot pay its bills..."

Read the rest on http://www.northcyprusfreepress.com

rocking


Joined: 05/11/2008
Posts: 421

Message Posted:
18/11/2009 18:27

With 5 planes and about 950 staff do not suppose they can pay their bills. They may have made something in the past, but with the borders open a great many people use Larnaca. If Sabanci (Pegasus) can make flights to UK work and get a profit why not CTA - the answer is that he is a businessman who is very successful in Turkey and CTA needs to slash at least half their staff. I do not know at the moment, but for years CTA has been run by people with no experience of the air-line industry. They used to have a small office in Cockspur Street, next thing they have offices in Pall Mall a superb set of offices - goodness knows what the rent is for that address.

magolina


Joined: 06/12/2008
Posts: 461

Message Posted:
18/11/2009 18:52

If C T A were to really try that bit harder we would I am sure rather use them than go to Larnaca. I hate the thought of going south but cant even get a flight when I need to go so some times have no choice Try to offer us cheaper flights and I am sure we would all use them It is in their hands.Over to them

TinLondon


Joined: 20/07/2009
Posts: 171

Message Posted:
18/11/2009 18:58

Rocking,

You've hit the nail on the head! you're absolutely correct, the head of CTA is actually a dentist and has very little / no airline experience, so unless you need a tooth pulling out at 35,000ft then I'm not really sure what he's doing in that position? I thought the debt was more in the tune of $80m not $47m, either way it's a lot of money to make up with just 5 planes and with limited destinations. CTA seriously need to look at their spending.... 950 for 5 planes, a high profile office in central London, unlimited free travel to senior management and their families, seems excessive. A discussion on Ada TV a few weeks ago also revealed that two sets of pilots are used to fly to London, even though the number of flight hours is well within European safety limits for a single crew to be used all the way. I think CTA could easily continue flying with half it's current workforce and should be looking at working more efficiently rather than expect more handouts!

malsancak


Joined: 23/08/2009
Posts: 2874

Message Posted:
19/11/2009 09:53

The Cyprus Today (CT) article said that they had $47m capital, yes you're right the debt is $80m. I'm beginning to believe that the CT reporter meant that they were worth (capitalised) $47m. Plus they do not own the 5 planes, they are renting so no rental payments means no planes. As for cutting the staff, CTA is government owned and I'm sure the current government have that top of their agenda as far as CTA are concerned, but how to do this without strikes is another matter.