Eurocypria of Cyprus goes belly up, leaving thousands of tourists in the lurch

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The Cypriot Charter Airline Company Eurocypria with its ongoing financial challenges finally announced on Thursday an indefinite suspension of all flights. This desperately bad news for Cyprus Tourism is expected to disrupt the travel arrangements of thousands of international tourists.

The state-owned board of Eurocypria made this desperate announcement after its 320 staff declared an indefinite strike over job losses. Rumours surrounding the airline seems have impacted on the distraction of its staff, which by some reports compromised air safety.
More specifically the Company stated "The executive board has decided to indefinitely suspend the company's flight programme from midnight, November 4,". The  board went onto advise the Government in the capacity of sole owner to proceed with entering the process of the Company liquidation at the earliest juncture and moreover to seek alternative employment for the Companies existing employees.
As the dust settles, it appears that Eurocypria were in such serious financial difficulty, that in essence it was the core reason why its flight programme could not operate under "conditions of absolute safety."
The Government on the Island of Love declared that it can no longer manage 2 national airlines and that it desires to save the National carrier Cyprus Airways (CA) which earlier posted H1 losses of 25 million euros.
The liquidation and eventual closer of Eurocypria is expected to affect an estimated 15,000 tourists. The greatest impact to of which will come from the markets of Germany and Russia. Cyprus Airways may however undertake some if not all of the routes.
The strategy of the Government is likely to feature the implementation of a voluntary retirement scheme, which will be true for both airlines, in order to  allow Cyprus Airways to absorb as many of the unfortunate staff of Eurocypria as possible. All this said, the Government of Cyprus still needs EU approval (following state aid rules for Cyprus Airways to absorb the staff and services of Eurocypria).
On the Political front opposition MPs jumped on the bandwagon to accuse the current Government of gross mismanagement of the Country’s funds. Other Politicians estimate that Eurocypria's debts may actually exceed a stunning 56 million euros in total, well over double of the purchase price, as it was only in 2006 when the state bought Eurocypria for 23 million euros from Cyprus Airways, for which it has a 70% stake to prevent the more established airline carrier from going bust.