Charlie Airlines pays €2m to use Cyprus Airways logo for 10 years (Update-3)

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(Adds minister comment and background in fifth paragraph)

By Stelios Orphanides

Charlie Airlines, the subsidiary of Russia’s S7 airline, acquired the licence to use defunct Cyprus Airways brand name, logo, and trademark over the next 10 years for flights from and to Cyprus, for a total of €2.04m, the finance ministry’s privatisation unit said.

Under the licencing agreement, signed at the finance ministry on Friday, the state will remain the owner of the Cyprus Airways brand name, logo and trademark, the privatisation unit said. The agreement may be renewed for an additional five years “on the basis of negotiations of financial and commercial terms, between the Republic and the successful bidder.”

The implementation of the agreement with Charlie will be supervised by a special committee appointed by the finance minister, the privatisation unit said. “Supervision will include the adherence to certain standards of quality with which the successful bidder has to comply”.

All standards will be audited on a quarterly basis with the exception of one, which will be audited twice a year, the privatisations unit said.

Finance minister Harris Georgiades and transport minister Marios Demetriades described the agreement as an important development, which strengthens Cyprus’s connectivity and creates jobs, the Cyprus News Agency reported. The new company is expected to launch its flight schedule towards the end of the year, initially to three destinations in the UK, Greece, and Russia, using two Airbus A319 aircraft.

The government acquired the Cyprus Airways logo, brand name and trademark in December 2014, a month before the loss-making state-run airline run out of cash.

Charlie Airlines, which has applied for an air operator certificate, had to provide “proof of experience in administering and operating passenger flights” in order to participate in the bidding process, the privatisation unit said.

According to the statement, Russia’s S7 airline and its subsidiaries last year carried 10.6mln passengers. The company is also part of the One World airline alliance.

Charlie was successful in outbidding Greece’s Aegean Airlines in the tender, according to media reports.

Bidders had to submit their “utilisation plans” for the Cyprus Airways logo and name, describe their strategy in using and further developing them in the future, as well as their planned action to adhere to the licencing agreement.

FINANCE
0 BoC shareholders elect Ackermann, Ross into new board

By Stelios Orphanides

Bank of Cyprus shareholders elected Josef Ackermann, John Patrick Hourican, Wilbur Ross, Marios Kalochoritis, Vladimir Strzhalkovskiy, Ioannis Zographakis, Arne Berggren, Maksim Goldman, Christodoulos Patsalides and Michalis Spanos in to the lender’s

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