After the cabinet meeting on Cyprus Airways, the government Spokesman Stephanos Stephanou said that government aims to raise the share capital for airways.

 He said, ‘the Cabinet reaffirmed today its decision of January 2011 to raise the share capital of the company and approved the participation of the government as the major shareholder in the new issue of capital of the company,''

Stephanou said that the Minister of Finance have powers to take all necessary steps to implement the sale of the government’s majority stake in the company and develop a proposal that will come before the body for approval.

Stephanou said that Cyprus Airways has been facing several problems for years which became more pressing by decisions taken in the past but also with the accession of Cyprus to the EU and the liberalization of air transport.

He added that strong competition made the problems worse and they became even more pressing with the global economic recession.