Struggling Cypriot airline sells trademarks for €1.2m

Airline Cyprus Airways has sold its trademarks to the Cypriot government for €1.2 million ($1.5 million).

According to Cyprus-based news publication Cyprus Mail , the airline informed its investors on December 4 that “it signed an agreement for the sale of its logos, trademarks and brand rights to the government of the Republic of Cyprus for the amount of €1.2 million”.

“In accordance with the sale of the agreement, the consideration may increase upon the completion of a new evaluation,” it added.

Among its trademarks is a logo which features a flying mouflon (a breed of wild sheep found in Cyrpus) drawn out in straight lines, commonly used on the back wing of its planes. Under the terms of the agreement, the deal lasts for ten years with the government having the option for renewal.

The decision to sell its trademarks has sparked an angry response from the pilots union Pancyprian Airline Pilots Union.

Cyprus Mail said the union opposes any selling off of the airline’s assets until Auditor General Odysseas Michaelides has concluded his examination of the airline’s finances.

The financially struggling state-owned airline is expected to be privatised once a separate European Commission investigation into the legality a of €102 million bailout supplied by the Cypriot government last December has been concluded.

In February, the commission said it “has doubts whether the restructuring plan is suitable to ensure Cyprus Airways’ long-term viability and whether the airline is capable of withstanding likely challenges during the next years”.

For Maria Kyriacou, head of IP at Cyprus-based law firm Andreas Neocleous & Co, the decision raises questions about the future image of the company.

She told WIPR: “Are you selling your name? And then do you continue working without your name? I don’t know.”

Cyprus Airways did not respond immediately to a request for comment.