CA-Aeroflot breakup, Web challenges Cyta monopoly
Cyprus Airways could see its agreement with Aeroflot go belly-up after the government announced plans to liberalise charter flights from Moscow and St Petersburg, while on the telecom front Cyta could see its telephony monopoly disappear after tech giants introduce web-based services, according to the issue 174, on August 7, 1996. The Russian state carrier Aeroflot has written to Cyprus Airways chairman Vassilis Rologis saying that their cooperation, that accounts for 70%
of the tourism traffic from Russia, could be in jeopardy. The government, under pressure from hoteliers that saw falling numbers, decided to free all charter flights from Russia from November to October 1997 in an effort to boost tourist arrivals, but not yet sure about the quality of the arrivals. Aeroflot Cyprus General Manager Nikolai Pechnikov said: “Charter-parties are not a panacea from troubles.”
Tech giants Intel and Microsoft are fast introducing web-based services, such as Internet fax and email services that are expected to slash costs for individuals and companies
that run high telephone bills, as is the case of Cyta customers. Email is expected to drastically reduce fax costs, while Intel is expected to launch long-distance calls over the Internet on PCs running Windows 95.
Communications Minister Adamos Adamides intervened to settle a dispute between Cyprus Airways management and pilots’ union PASYPI over Captain Neophytos Georghiou’s decision to continue with a flight from Brussels to Larnaca, when a technical problem arose shortly after take-off.
Interamerican Insurance reported a doubling of profits by more than 114% to CYP 1.24 mln, due mainly to its Life business, with the General business continued to be loss making.