Capital.gr

Olympic Air announced on Tuesday that it signed a wide range cooperation agreement with Cyprus Airways, which focuses on the strengthening of the presence of the two airlines in the wider region of Southeastern Europe.

The agreement which was signed in Nicosia by Mr. Yiannis Karakadas, Olympic Air’s Executive Chairman, and Mr. George Mavrokostas Cyprus Airways Executive Chairman creates new horizons for the two companies, while offering important advantages to travelers. It provides for code sharing direct scheduled flights of Olympic Air and Cyprus Airways (domestic and international). Cooperation between the two companies will start on March 27th, with code shared flights from (and to) Athens, Rhodes, Herakleion and Thessaloniki, to (and from) Larnaka and Pafos. As from April 15th, it will be expanded to cover most domestic and international destinations, of Olympic Airways as well as flights of Cyprus Airways.

Travelers will have a much greater range of choices for trips, with cheaper air-fares to dozens of Greek islands and cities as well as the other European destinations that the two companies cover. Passengers of each company will collect points from the Sunmiles frequent flyers’ programmes of Cyprus Airways and the Travelair Club of Olympic Air for the entire itinerary up to their final destination, regardless of whether one leg of the trip involves one company or the other. At the same time they will have the opportunity to redeem the points they collected in both companies, winning more free trips. Details will be announced at a later date.

Cooperation between the two airlines will cover other sectors as well, such as the provision of ground services at the airports of Greece and Cyprus, the joint use of VIP lounges and the exploration of all options for the utilization of the infrastructures of the two airlines.

Olympic Air’s Executive Chairman Mr. Yiannis Karakadas made the following statement: “Our common origins and the high standard of passenger service which characterize both Cyprus Airways and Olympic Air will receive a big boost as a result of this agreement, creating an even larger network for our passengers who will benefit from the common vision of excellence in the services we provide. Today Cyprus Airways and Olympic Air are laying the foundations for cooperation with excellent prospects of further expansion.”

Cyprus Airways Executive Chairman Mr. George Mavrokostas said: “I am pleased that this common effort has born fruit and I am sure that a new era is dawning in the relations between Cyprus Airways and Olympic Air, with a promising future for both organizations. The prospects of the new cooperation lead to a stronger presence of the two companies in the wider region of Southeastern Europe during a very difficult
period for international air transport, offering important benefits and advantages to the traveling public.”

Financial Mirror

For several months now the island’s main carrier, Cyprus Airways, has been on the defensive, reacting to challenges from other airlines, but with no clear forward-thinking strategy of its own.
It all started in December when CAIR slashed return fares from the UK by about 100 pounds, trying to fend off the competition from prime rival British Airways, as well as regional and charter operators such as Monarch and Flyglobespan. Then came the threat from easyJet that multiplied its schedule to Cyprus by adding flights to Larnaca, beyond the near-capacity operation to Paphos.
CAIR’s biggest money-earner is also at risk as Aegean has grown up from a young upstart and has matured into a fully-fledged operator, hoping to become the leading airline between Cyprus and Greece. Other fledgling airlines are also eyeing Cyprus, while the new owners at Olympic will probably embark on a major drive to win back lost business, taking as much from Cyprus Airways along the way.
The national carrier was forced to reconsider its plans to scrap the loss-making Larnaca-Paphos-Athens flight after Aegean said it was increasing the number of its weekly flights and started a new service to Paphos. Cyprus Airways countered with an offer of 134 euros to Athens for 4,500 seats, but these quickly sold out.
CAIR has recently announced further knee-jerk reactions to major competitors, with the latest being the 260-euro offer to Dubai, at a time when Emirates sold out a once-time offer to Malta for 200 euros, including air fare, taxes and accommodation.
However, for some obscure reason, it is happy to keep the loss-making Beirut service afloat, whereas it could even increase its earnings by putting on smaller aircraft, lowering the air fare and cutting the costly overnight stay of its crews.
Though the airline’s books seem to be in the black for now, not responding to the great demand of its most loyal customers could spell its final demise.
The main problem with the airline’s management is that it may introduce cut-rate offers to beat the competition, but it does not follow through, resulting in passengers swinging from one airline to the other.
Offers are also limited in number to no more than 15 seats per flights, which is why offers are taken up so fast, with management often denying rumours that staffers with the know grab them first. This obviously annoys customers to switch their allegiance to rival operators and deters others from considering short breaks rather than stay home.
It is also unjustifiable that other airlines (Austrian, Lufthansa) are taking the lion’s share of travel to Brussels, at a time when Cyprus Airways, too, flies to the EU capital.
Unless, of course, the plan is to finally run it into the ground, only to be “saved” by a handful of investors who have been eyeing a takeover for some time.