Cyprus Airways dismissed reports saying the national carrier has opted to buy Airbus over US rival Boeing in an estimated $650 million deal to replace its ageing fleet.
"No decision was taken. Everything is still under consideration so the report is irrelevant," Cyprus Airways spokesman Tassos Angeli told AFP.
Moreover, the spokesman said that the airline would now extend its deadline for making a decision for at least a week or so. It had said the winning company — to replace its circa 1989 Airbus fleet — would be announced on January 31.
"It is a very complicated task and the committee has not finished. It could be several more days or a few more weeks until a decision is finalized," Angeli said.
The daily Politis newspaper published a front page article Tuesday claiming that state-controlled Cyprus Airways had decided to buy Airbus planes because of the island's European Union accession bid.
"We are still evaluating the proposals of Boeing and Airbus and at the same time the proposals of four European leasing companies ... we might decide to lease or do a combination of both," Angeli said.
Sealing the contract could prove even more lucrative if Cyprus Airways succeeds in its bid to acquire up to 30 percent of debt-ridden Greek carrier Olympic Airways, 65 percent of which is being sold off by the Greek government.
"We will submit our strategic business plan in London for running Olympic," Angeli said. He added: "We are making a serious bid and of the eight companies which received the prospectus we are thought to be among the most reliable firms interested."
Cyprus Airways is part of a consortium seeking a 51 percent majority stake in Olympic, of which the carrier wants a 10 to 30 percent holding. The other members of the consortium have not been revealed but include large tour operators and financial institutions.
Olympic Airways has only once made a profit in the past 20 years, is burdened with debts exceeding 40 billion drachma ($108 million, €117 million) and is expecting heavy losses again this year. By contrast, Cyprus Airways made pre-tax profits of $14.4 million in 1999.
Rival builders Boeing and Airbus were staging separate press briefings on the island Tuesday as both companies crank up the no-holds-barred contest to win the lucrative Cyprus Airways contract.
The government has received strong lobbying from EU diplomats on behalf of Airbus and the US embassy has done its bidding on behalf of the Seattle manufacturer. With Washington's efforts seen as crucial to finding a settlement to the problem of Cyprus, divided between Greek and Turkish areas with UN peacekeepers in between, and the island's drive toward EU accession by 2003, the commercial deal has turned into a political tug-of-war.
Airbus reported on Monday record sales and deliveries for 2000, closing the gap with Boeing, but said new orders would weaken this year. It claimed 46 percent of the world market in terms of value, and is aiming for 50 percent.
Boeing has not supplied aircraft to Cyprus Airways for two decades and is desperate to get a foothold in the region. Cyprus Airways wants to replace its 12-plane Airbus fleet with either Airbus A-320s or Boeing 737-800 or 767-300s. — (AFP, Nicosia)
© Agence France Presse 2001
© 2001 Mena Report (www.menareport.com)
