CTA having Financial difficulties

blinky



Joined: 07/12/2008
Posts: 187

Message Posted:
17/06/2009 14:57

Have been told to be carefull about booking flights with CTA, ensuring its ABTA, bonded agent,credit card booking / insurance etc, is there any truth in this?

I know its the 'reccession' but it will be sad to see the Airline fail, i'm sure the trnc Gov will help out!!??!

TRNCVaughan


Joined: 27/04/2008
Posts: 4578

Message Posted:
17/06/2009 15:07

The TRNC gov (tax payer and Turkey) has helped out like nobodys business.

Stubs


Joined: 01/07/2008
Posts: 641

Message Posted:
17/06/2009 15:14

Dont know if the Airline will fail however it is well known that it is a huge loss making operation.



Maybe Tom at flightholiday would advise but if you book via a travel agent then it is the travel agents bond which you are booking under.



If that is not the case then i stand corrected.

flightholiday


Joined: 19/07/2007
Posts: 3217

Message Posted:
17/06/2009 15:16

Just about every airline has financial problems - so far CTA have been helped by both Turkish and TRNC governments.



If you buy your flights direct from KTHY you are not covered by an ATOL bond if you buy through one of their agents the flights should be covered by the ATOL bond or TTA agreement.

flightholiday


Joined: 19/07/2007
Posts: 3217

Message Posted:
17/06/2009 15:21

Stubs I was penning the message as you were writing yours - Travel agents may not be ATOL bonded so the ticket has to be bought from an ATOL holder.



If the ticket is issued then it might be your insurance companies responsibility - this can get very mucky. My main point was that buying direct from the airline is at your risk as no normal scheduled airline is ATOL bonded.

mmmmmm



Joined: 19/12/2008
Posts: 8398

Message Posted:
17/06/2009 15:32

If buying from the airline...doesn't paying via a UK bank Credit card "protect" you, too?



Such rumours have abounded for years re Cyprus Airways, too... somehow or other the money has always be found to "help out"... will this time be any different ?

Stubs


Joined: 01/07/2008
Posts: 641

Message Posted:
17/06/2009 15:41

Thanks Tom



a scource of valuable info as always.

Dusterbruce


Joined: 03/08/2007
Posts: 1125

Message Posted:
17/06/2009 15:45

Best way to send a struggling company over the edge I suppose. Spread the rumours even more.

TimothyCadman


Joined: 13/12/2007
Posts: 1040

Message Posted:
17/06/2009 21:13

When a company Chairman, like the one at BA, asks it staff to go on unpaid leave for a month, or work for no pay for one month, then something is surely very amiss with the aviation industry.

I suppose like many companies it can't reign in commitments fast enough to make what business they have viable.

Hector


Joined: 26/08/2008
Posts: 2352

Message Posted:
17/06/2009 22:12

I don't think this forum is spreading 'rumours.' Front page headline of Cyprus Today June 6, 'CTA plunges to the brink.' It says that the government has admitted CTA & Kibtek are on the brink of collapse. Both companies had 'heavy debts' and it was 'impossible for them to continue functioning.' CTA was on the 'verge of bankruptcy' having run up debts of $70 million. Kibtek while being owed 213 million TL has debts of more than 170 million TL. The Cabinet has pledged to give immediate support to both firms. CTA had increased it's staff from 700 to 900 since last year. It has 128 staff for each plane. It is rumoured that one plane has had to be surrendered back to the hire company due to non payment.

dalartokat


Joined: 14/04/2008
Posts: 734

Message Posted:
17/06/2009 23:08

KTHY have taken a 14% loss during 2008-2009, despite believe it or not, an increase in passengers. Its fleet is over 20 years old but has not stopped them leasing another plane financed by Finansbank and delivery due Xmas 2009 or before. It may be that they will drop another plane. Its the Cyprus mentality of continuing to spend when they have no money coming in but probably looks towardsTurkey bailing them out again or looking for backers when they finally fall. At the end of the day Northern Cyprus has to have an airline.

Dusterbruce


Joined: 03/08/2007
Posts: 1125

Message Posted:
17/06/2009 23:33

According to Wikipedia, the average age of the KTHY fleet is 6.3 years.



http://en.wikipedia.org/wiki/Cyprus_Turkish_Airlines

dalartokat


Joined: 14/04/2008
Posts: 734

Message Posted:
17/06/2009 23:40

If you wish to believe "Wikipedia" that is your choice.

Dusterbruce


Joined: 03/08/2007
Posts: 1125

Message Posted:
18/06/2009 00:26

OK, dalartokat.

CTA fleet at 12May 2009 was 2 A321-200, 1 A320-200 and 4 Boeing 737-800.

The 321's were leased in 2004, maybe not new but they cannot be more than 13 years old as the 321 did not go into service until 1996.

The latest 737 is new, Feb 2009. 2 were leased in 2000 and the 4th in 2001. Again maybe not new but cannot be more than 11 years old as the 737-800 did not go into commercial service until 1998.



So, the fleet may be more than the 6.3 years that Wikipedia quotes, but it would be impossible for it to be the 20 years that you quote as the aircraft types were not in service 20 years ago.

Lemtich



Joined: 15/02/2007
Posts: 1487

Message Posted:
18/06/2009 01:09

As I read this thread, the words "Easyjet to Larnaca" kept passing through my mind.



Initial flights for 2009 posted in November 2008 quoted £86 return to Gatwick.



Guess which mug decided to wait to January 2009 to book and then had a shock at the price increase to £207?



Grrrrrrr!



Lem

Earlybird


Joined: 28/04/2009
Posts: 816

Message Posted:
18/06/2009 09:41

If you book by credit card you have the credit card protection. No problem.

deecyprus4


Joined: 27/07/2008
Posts: 3452

Message Posted:
18/06/2009 09:54

cta is overmanned with unpleasant surly and downright unhelpful staff...that is why they are in difficulty.

dav88



Joined: 01/08/2008
Posts: 605

Message Posted:
18/06/2009 11:13

thats right they should hire me! id be like ` :D ` all day!

wanderer


Joined: 05/02/2009
Posts: 1653

Message Posted:
18/06/2009 11:50

BA pilots volunteer for pay cut all BA staff asked to work for a month without pay Willie Walsh says things are desperate for BA

Its the airline problem "Its the economy stupid" Bill Clinton

Over staffing for CTA

Direct UK flight one crew round journey

Land in Turkey 3 crews because of working day would be too long

Surly staff

My Turkish is non existent a smile goes a long way from the customer I've had no problems

begonia


Joined: 19/05/2009
Posts: 229

Message Posted:
18/06/2009 12:55

I have had no problems with CTA or it's staff. As wanderer says a smile goes a long way.

Ditto Turkish Airlines.

begonia


Joined: 19/05/2009
Posts: 229

Message Posted:
18/06/2009 13:00

Having said that I wonder if CTA have replaced the part thought to have have been involved in the Air France

Airbus crash. Apparently it was recommended before the crash. ?speed sensor

Dusterbruce


Joined: 03/08/2007
Posts: 1125

Message Posted:
18/06/2009 13:03

CTA dont have any A330's

begonia


Joined: 19/05/2009
Posts: 229

Message Posted:
18/06/2009 13:43

Thank you for that Dusterbruce.

LondonCypriot


Joined: 15/12/2008
Posts: 426

Message Posted:
23/06/2009 00:55

ALWAYS TAKE TRAVEL INSURANCE AND PAY BY VISA OR MASTER CARD.

Hector


Joined: 26/08/2008
Posts: 2352

Message Posted:
23/06/2009 01:17

It is worrying. Really worried that if I do book with CTA, and I always do, will I get caught out and stranded if they go bust?

I've had no problems with CTA. Gatwick to Ercan. Flights on time. Staff fine. I don't think much of their aircraft though. They might not be 20 years old but they feel like they are. Legroom is awful, seats very tired and cushioning sometimes bad, sitting on framework. Why do they have to try and cram so many seats in? Not normally full.

I believe that the new aircraft for German routes may be on hold due to lack of funds. I don't know what the right level of staffing is but 900 does seem a tad OTT, especially as that probably doesn't include all the ground staff at airports other than Ercan.

Coachie



Joined: 29/07/2008
Posts: 2135

Message Posted:
23/06/2009 15:08

Modern aircraft are sold with a minimum life span on the airframe of 20yrs.When Concorde finished flying the airframe was good for another 20yrs due to the lack of flying hours that she had accrued,and she was 30yrs old when the retired her.

Dusterbruce


Joined: 03/08/2007
Posts: 1125

Message Posted:
23/06/2009 18:15

I have no concerns when I fly CTA about the safety standards of their aircraft. If they were not up to scratch they would not be allowed in EU airspace.