Friday, July 2, 2010

Cyprus Airways president resigns - Kikis Lazarides leaves Cyprus Airways

The President of the board of directors of Cyprus Airways, Kikis Lazarides,  presented his resignation to the President of the Republic of Cyprus, Mr. Demetris Christofias. Mr Lazarides was assigned to this position by the recently deceased last president Tasos Papadopoulos back in 2004.

Everything seems to point that Lazarides has found hard core reactions in both inside and outside the company,  while he wanted to put order in the turbulent economics and politics of the state owned airline.
The scandal of Eurocypria, the ex sister airline of Cyprus airways, that broke a few weeks ago, when suddenly the Cypriot citizen has realized that politicians of many political colours,  have cheated the parliament  to release 35 million Euros to save Eurocyopria last winter  from guaranteed bankruptcy , is only the tip of the iceberg. The General Accountant of the Republic of Cyprus in his report about Cyprus air transport points very clearly the it is unviable and unsustainable  to have 2 state owned airlines in Cyprus and therefore an immediate merge of the two airlines was the first step to survival.

Lazarides, former Banker , president of Laiki Polular Bank, now Marfin Laiki Bank, has found himself in the centre of the hurricane and today he decided to resign. He leaves behind him an uncertain future for the Airline that lacks of flexibility and has very little character of a modern company.  Cyprus Airlines is used to monopolistic routes and has very little view of how the world of air transport has changed the last years. Closed in the walls themselves have built, the airline suffers from the CCSS (Cypriot Civil Servant Syndrome). A virus that lately has been without any vaccination in Cyprus.

The state is the sole owner of both airlines in Cyprus, this creates the perfect scenery for corruption and private political agendas to flourish.  This year is a very tough year for the fragile Cypriot Tourism industry, crisis of this type should be avoided or given a quick and very effective solution. Maybe is time for the Cypriot politicians and micro-politicians to stay out of the management of vital sectors such as air transport.
Cyprus is a profitable destination especially if someone looks the geographic location of the island, with two new airports (run privately)  that are a jewel of out tourism crown, a new generation airline should be born from this.

Lazarides left by himself, what are the others going to do? Would they give up too? My guess is that there is more than one who likes Lazarides chair, people who like political positions but they know they will never be elected not even for the Backgammon club of their village.

My opinion that there is not enough meat for all the vultures on this corpse, but vultures at the end fight amongst themselves for the last piece of skin.