CYPRUS Airways unions are questioning the logic behind reported intentions by the airline to hire three executives of Lufthansa Consulting for a combined fee of €1.3m.
The three have been approached by the board of CY to supervise the restructuring of the ailing airline until the end of the year. It’s understood the Lufthansa execs were on the island for talks with the CY board last week.
Reports yesterday said the three have been offered a whopping €1.3m between them for the remainder of the year - a figure, which if accurate, does not sit well with CY trade unions who are facing pay cuts of up to 25 per cent as part of the airline’s restructuring and downsizing.
Unconfirmed reports said also the Lufthansa execs would be acting as consultants but at the same time would be given executive powers.
The airline could not be reached for comment yesterday.
But Andreas Pierides, head of the airline’s largest union CYNIKA, said that if the reports were true they raised a series of questions.
“First, who are these people, and are they familiar with the Cypriot market?” he said.
“Second, why is the government and/or the company hiring people from Lufthansa? Would it not make more sense to hire consultants from Air France-KLM, the same people who drafted the restructuring plan and know it inside out?”
Moreover, Pierides asked, “given that these people are outsiders, how will they be held accountable for any mistakes or omissions?
“And how is the company going to come up with the €1.3m to pay these foreign consultants? Not to mention that this amount is insulting to the airline employees who are facing 20 to 25 per cent cuts in salary.”
The trade unionist also questioned the wisdom of hiring consultants now, at the start of the summer season, since all the deals and routes for the summer are already in place.
“If it was at the start of the winter season, then fine. But now, what will they be doing to earn €1.3m? Work on their tans?”
In a loaded comment, Pierides pointed out also that Lufthansa and Aegean Airlines - a competitor of CY - are partners in Star Alliance, the largest global airline alliance that has code-sharing agreements in place, among others.
The proposal to restructure the national carrier includes offering a redundancy package for 490 members of staff, from the 560 earmarked in the original restructuring plan for the airline, providing 50 per cent of the redundancy compensation initially demanded by the unions.
CY unions approved the latest rescue deal for the airline last week.