The problems of Cyprus Airways during the recent years Essay

The problems of Cyprus Airways during the recent years - Essay Example It flies to many destinations in Europe, the Middle East and the Gulf region through its scheduled operations. Its main operational base was the Nicosia International Airport, which had to be abandoned in 1974 subsequent to the Turkish invasion of the Turkish areas of Cyprus. It now uses the Larnaca International Airport as its main hub and also has a hub at Paphos International Airport. It was on September 24, 1947 that Cyprus Airways came into being as a joint business venture consisting of the Cypriot government, British European Airways and private investors. Commercial operations started on April 18, 1948 through a Douglas DC – 3 aircraft flying on regional routes out of Nicosia, the capital of Cyprus. On the basis of a charter agreement use of British European Vickers Viscount airliners commenced five years later on April 18, 1953. Another five years down the line British European Airways took over the operational aspects of all Cyprus Airways services from January 26, 1958. Expansions to the business activities of Cyprus Airways took place through the establishment of a wholly-owned charter subsidiary in 1992, as a means to tap the growing IT charter market in and out of Cyprus. A decade down the line it founded Hellas Jet in Athens, Greece, in 2002 with a seventy-five percent share in the carrier. These were the days of prosperity for Cyprus Airways. The current ownership of the Cyprus is more than sixty-nine percent with the Government of Cyprus and the rest with private shareholders making it a more of a public sector undertaking. It has tried to incorporate quality as strategy in its business model with its Business class and Economy class offering upgraded in-flight service that goes well in comparison with the quality conscious international airlines. (1). In May 2004, Cyprus joined the European Union and by August 2004, Cyprus Airways was fighting for its survival (2). In 2004 Cyprus Airways reported a net loss of CYP 39.4 million,