CYP AIR AN REPORT ENG final - Cyprus Airways

CONTENTS
1
ñ OFFICERS&PROFESSIONAL
ADVISERS 2
ñ FINANCIALREVIEW 4
ñ OPERATINGENVIRONMENT 11
ñ TRAFFIC&CAPACITY 12
ñ COMMERCIALOPERATIONS 14
ñ FLEET 17
ñ PERSONNEL 18
ñ INFORMATIONTECHNOLOGY 20
ñ PRESS&PUBLICAFFAIRS 22
ñ AIRPORTOPERATIONS 23
ñ
SUBSIDIARY&ASSOCIATED
COMPANIES 25
CONTENTS
ñ
ñ
NOTICEOFANNUALGENERAL
MEETING 28
NOTICEOFGENERALMEETINGOF
THEPRIVATESHAREHOLDERS 28
ñ FINANCIALSTATEMENTS 29
ñ GLOSSARYOFTERMS 60

2
OFFICERS&PROFESSIONAL
ADVISERS
CYPRUS AIRWAYS LTD
BOARD OF DIRECTORS
Constantinos
Loizides
CHAIRMAN
Achilleas
Kyprianou
VICE-CHAIRMAN
Charalambos
Alexandrou
GENERAL
MANAGER
Christos Kyriakides
Michalis
Antoniou
Georghios
Georghiou
ASSISTANT
GENERAL
MANAGERS
Olga Eliades
ASSISTANT GENERAL
MANAGER (COMMERCIAL)
George
Christodoulides
ASSISTANT GENERAL
MANAGER (OPERATIONS)
George
Kallis
Kikis
Lefkaritis
Christos
Papaellinas
Andreas
Philippou
Pavlos
Photiades
Christos
Taliadoros
SENIOR
MANAGEMENT
George Spyrou
CORPORATE
SECRETARY/HEAD OF LEGAL
SERVICES
Eleni Kaloyirou
CHIEF FINANCIAL OFFICER
John Kythreotis
FLIGHT OPERATIONS
DIRECTOR
Christoforos
Michaelides
ENGINEERING &
MAINTENANCE MANAGER
Charalambos
Charalambous
HEAD OF HUMAN
RESOURCES &
ADMINISTRATION
Marios Pefkaros
HEAD OF SALES
Gregoris
Gregoriades
HEAD OF MARKETING
LEGAL
ADVISERS
Chryssafinis &
Polyviou
AUDITORS
KPMG
EUROCYPRIA
AIRLINES
LTD
BOARD OF
DIRECTORS
Constantinos Loizides
CHAIRMAN
Charis Charalambous
VICE CHAIRMAN
Christis Christoforou
Georghios Georghiou
George Kallis
Yiannis Petrides
Iphigenia Stylianidou
Michalis Zavos
GENERAL MANAGER
George Souroullas
CYPRUS
AIRWAYS
(DUTY-FREE
SHOPS) LTD
BOARD OF
DIRECTORS
Constantinos Loizides
CHAIRMAN
Christos Patsalides
VICE CHAIRMAN
Panayiotis Loizides
Stavros Michael
Andreas Philippou
Antonis Shiarlis
Paris Spanos
GENERAL MANAGER
Costas Koukkoullis

3
OFFICERS&PROFESSIONALADVISERS
CYPRAIR
TOURS LTD
∑∂¡√¡
¡.D.C. LTD
HELLAS JET
S.A.
BOARD OF
DIRECTORS
Constantinos Loizides
CHAIRMAN
Doros Jeropoulos
VICE CHAIRMAN
Antonakis Andronicou
Savvas Chrysanthou
Christos Kyriakides
Christos Papaellinas
Pavlos Photiades
GENERAL MANAGER
Andrew Russell
BOARD OF
DIRECTORS
Constantinos Loizides
CHAIRMAN
Achilleas Kyprianou
VICE CHAIRMAN
Eric Boutros
Pavlos Iacovides
George Kourris
GENERAL MANAGER
Phanos Constantinides
BOARD OF
DIRECTORS
George Politakis
CHAIRMAN AND FIRST EXECUTIVE
OFFICER
Achilleas Kyprianou
VICE CHAIRMAN
Dionyssios Dendrinos
Antonios Doumanoglou
Steve Froustis
Eleni Hatzidaki
George Kallis
Dimitrios Katsoulis
Panteleimon Vernikos
ACTING GENERAL
MANAGER
Stavros Agathangelou
REGISTERED OFFICE
OF THE COMPANIES
OF CYPRUS AIRWAYS
GROUP
21 Alkeou Street, Engomi
P.O.Box 21903
1514 Nicosia, Cyprus.
Telephone: 22663054,
∆elex: 2225 AIRWAY CY,
Telefax: 22663167
(Cyprus Airways Ltd
Reg. No. 314)

4
FINANCIALREVIEW
The Group made a consolidated loss after
taxation and after the interest of other shareholders of
Hellas Jet of í20,9 million in 2003 compared to a
consolidated profit of í10,5 million in 2002. The Group
loss before tax and interest of other shareholders of
Hellas Jet was í29,0 million in 2003 in comparison to a
profit of í4,7 million in 2002. The loss of 2003
consolidates for the first time the results of Hellas Jet S.A.
The profit after tax of 2002 includes the release of í7,8
million from the deferred tax provision which was no
longer required following the tax legislation changes
enacted in 2002.
CYPRUS AIRWAYS LIMITED
Cyprus Airways recorded a loss before tax of í25,6
million in 2003 compared to a loss before tax of í1,2
million in 2002.
The war in Iraq, the economic recession affecting
Europe and the continuing decrease of tourist traffic to
Cyprus as well as the weakening of Sterling against the
Cyprus Pound played a key role in reducing the
Company’s revenues and increasing this year’s loss.
Revenue
Total revenue fell by 10,5% to í143,1 million in 2003 from
í159,9 million in 2002.
Net revenue from the carriage of passengers on
scheduled and charter services decreased to í115,3
million in 2003 from í121,8 million in 2002. The 5,3%
decrease can be mainly attributed to the drop of 6,5% in

5
the net yield per revenue passenger kilometre and
resulted despite the increase of passengers carried by
2,4% (40.181 more passengers in 2003). The drop in the
net yield per revenue passenger kilometre is attributed to
the lower fares offered due to prevailing market
conditions, as explained above, as well as to the
weakening of Sterling and the US Dollar against the
Cyprus Pound.
Net freight and mail revenue decreased by 5,7%
to í9,9 million in 2003 from í10,5 million in 2002.
Other revenue decreased by 35,1% to í17,9
million in 2003 from í27,6 million in 2002. This reduction
can be mainly attributed to the decrease in the leasing
income from Eurocypria resulting from the redelivery of
the two A320 aircraft to Cyprus Airways.
Operating Expenditure
Operating expenditure increased by 4,6% to í168,9
million in 2003 from í161,4 million in 2002. In particular
cost of sales increased by 4,7% to í160,1 million in 2003
from í152,9 million in 2002. Administration expenses
increased by 3,5% to í8,8 million in 2003 from í8,5
million in 2002. The overall increase in costs is mainly
attributed to the following:
ñ Staff Costs, representing 34,2% of total operating
costs, remained the highest single expense for the
Company, reaching the level of í57,8 million in 2003
from í52,6 million in 2002. This increase of 9,9% is
attributed to the increase in the cost of living allowance,
the normal annual increments granted to employees
during the year, the pay rises of 2% granted to
employees as part of the renewal of the Collective
Agreement and the average increase in manpower of
1,3%. In addition, staff costs in 2003 were higher than
2002 by í1,5 million due to the compensation paid to
employees who took early retirement and due to the
provision made in respect of the payment of the pilots’
accumulated annual leave.
ñ Aircraft Maintenance costs decreased by 19,4%
to í22,9 million in 2003 from í28,4 million in 2002. This
decrease can be mainly attributed to the removal of the
four A310 aircraft from the Company’s fleet and the
introduction of the new A319 and A330 aircraft which
enjoy lower maintenance costs.
ñ Operating lease charges increased to í5,1
million in 2003 from í0,2 million in 2002 due to the first
A330 being used for a full year in 2003 (delivered in
December 2002) and the introduction of the second
A330 in April 2003.
ñ Ad hoc hire of aircraft costs decreased by 77,8%
to í0,2 million in 2003 from í0,9 million in 2002 due to
the reduced need for ad hoc hiring of aircraft as a result
of the renewal of the Company’s fleet.
ñ Fuel costs decreased by 2,1% to í18,6 million in
2003 from í19,0 million in 2002 despite the increase in
jet fuel prices as this was mitigated by the weakening of
the US dollar against the Cyprus pound.
ñ En route charges, landing and handling fees,
recorded an increase of 6,8% to í25,3 million in 2003
from í23,7 million in 2002. This increase can mainly be
FINANCIALREVIEW

6
FINANCIALREVIEW
attributed to the increase in the number of flights
operated by 5%.
ñ Aircraft catering and duty free sales costs
increased by 1,8%, to í5,8 million in 2003 from í5,7
million in 2002. The increase was the result of the higher
number of passengers carried.
ñ Depreciation charges increased by 7,9% to í15,0
million in 2003 from í13,9 million in 2002. The increase is
due to the full year depreciation charge of the two A319
aircraft delivered in April and July 2002 respectively and
the depreciation charge of the A330 spare engine.
ñ Insurance costs decreased by 24,4% to í3,1
million in 2003 from í4,1 million in 2002. The decrease is
attributed to the drop in passenger insurance and in the
third party liability insurance.
ñ Selling and Promotional costs increased by
15,6% to í5,2 million in 2003 from í4,5 million in 2002.
The increase is attributed to the advertising campaign
which was related to the new corporate identity.
ñ Other expenses which include accommodation
and communication costs, legal and professional fees,
general and administration expenses and exchange
gains or losses from operating transactions increased by
15,1% to í9,9 million in 2003 from í8,6 million in 2002.
This increase is mainly attributed to the fact that the 2003
costs were reduced by a profit on exchange on normal
transactions of í0,3 million, whereas the comparative
figure for 2002 was í2,1 million.
Operating Loss
The operating loss for the year increased significantly to
í25,8 million in 2003 from í1,5 million in 2002.
Net Financing Income - Interest Charges and
Exchange Gains/Losses
Net financing income for 2003 amounted to í0,2 million
in comparison to a net income of í0,3 million in 2002.
Net interest payable amounted to í0,6 million in
2003 in comparison to net interest payable of í0,2 million
in 2002 mainly as a result of the new loans raised for the
financing of the A319 aircraft and the decrease in interest
receivable due to the drop in interest rates as well as to
the lower available balances.
During 2003 the Company recorded an exchange
gain of í0,8 million in comparison to an exchange gain
of í0,5 million in 2002.
EUROCYPRIA AIRLINES
LIMITED
Eurocypria recorded a profit, before taxation, of í0,5
million in 2003 compared to a loss, before taxation, of
í1,2 million in 2002.
Revenue
Total revenue decreased by 5,8% to í35,5 million in 2003
from í37,7 million in 2002.
Net revenue from the carriage of passengers
decreased by 4,2% to í33,9 million in 2003 from í35,4
million in 2002. Total flights operated decreased by 45 or
2,6% to 1.655 flights in 2003 from 1.700 flights in 2002
whereas the total number of passengers carried
increased by 2.449 or 0,5% to 500.178 passengers
carried in 2003 from 497.729 passengers carried in 2002.
The decrease in revenue from carriage of
passengers is mainly attributed to the weakening of
Sterling against the Cyprus Pound and the reduction in
yields as a result of the Iraq war.
Other revenue decreased by 30,4% to í1,6 million
in 2003 from í2,3 million in 2002 mainly as a result of the
decrease in aircraft sublease income.

7
FINANCIALREVIEW
Operating Expenditure
Operating expenditure decreased by í4,3 million to
í34,9 million in 2003 from í39,2 million in 2002. In
particular cost of sales decreased by 12,6% to í32,5
million in 2003 from í37,2 million in 2002. Administration
expenses increased by 20,0% to í2,4 million in 2003
from í2,0 million in 2002. The major cost categories of
the company with brief explanations for each one are set
out below:
ñ Staff costs increased by 17,4% to í5,4 million in
2003 from í4,6 million in 2002. This increase is mainly
attributed to the pay rises given to employees during the
renewal of the Collective Agreement as well as to the
pilot conversion costs associated with the introduction of
the Boeing 737-800 in 2003.
ñ Aircraft maintenance costs decreased by 44,6%
to í4,6 million in 2003 from í8,3 million in 2002 as a
result of the introduction of the four new aircraft which
have lower maintenance costs.
ñ En-route charges, landing and handling fees
remained unchanged as in 2002 at í7,2 million.
ñ Fuel costs decreased by 10,9% to í5,7 million in
2003 from í6,4 million in 2002 due to the weakening of
the US dollar against the Cyprus pound and the reduced
consumption.
ñ Aircraft leasing costs decreased by 4,9% to í7,8
million in 2003 from í8,2 million in 2002 as a result of the
weakening of the US dollar against the Cyprus pound.

8
FINANCIALREVIEW
ñ Aircraft catering and duty free sales costs
decreased by 9,5% to í1,9 million in 2003 from í2,1
million in 2002 mainly as a result of a reduction in
catering expenses.
ñ Selling and promotional expenses decreased by
22,2% to í0,07 million in 2003 from í0,09 million in 2002.
ñ Insurance costs decreased by 42,9% to í0,4
million in 2003 from í0,7 million in 2002 as a result of the
decrease in insurance premiums.
ñ Other expenses which include administration and
communication costs, depreciation and exchange gains
or losses from operating transactions increased to í1,8
million in 2003 from í1,7 million in 2002 due to the
increase in depreciation and professional fees.
Operating Profit
The increase in operating profit to í0,6 million in 2003
compared to an operating loss of í1,5 million in 2002
can be attributed to the lower operating costs associated
with the introduction of the new Boeing 737-800 aircraft.
Net Financing Expense
Net financing expense amounted to í0,02 million in
2003 in comparison to Net Financing Income í0,3 million
in 2002.
CYPRAIR TOURS LIMITED
Cyprair Tours, a wholly owned subsidiary of Cyprus
Airways Ltd, continued its operation as a specialist tour
operator, organising inclusive holidays to Cyprus from
major cities in the United Kingdom. The turnover of the
Company decreased by 18,9% to í4,3 million in 2003
from í5,3 million in 2002. Despite the fall in turnover the
company recorded a profit before taxation of í19.500 in
2003 compared to a profit of í7.700 in 2002.
CYPRUS AIRWAYS
(DUTY-FREE SHOPS)
LIMITED
Cyprus Airways (Duty-Free Shops) Ltd, which is wholly
owned by Cyprus Airways Ltd, commenced operations
on 1 May 1996 by taking over the operation of the duty
free shops at Larnaca and Paphos airports. This
Company is treated as an associate in the Group
accounts, using the equity method of accounting, as
clearly explained in the Group’s financial statements.
The turnover of the Company increased by 2,7%
to í56,8 million in 2003 from í55,3 million in 2002. This
increase was achieved despite the reduction in
passenger numbers by 2,1% compared to 2002. The
profit before taxation attributable to the Cyprus Airways
Group from the Company came to í7,0 million in 2003 in
comparison to í7,1 million in 2002.
ZENON NDC LIMITED
Zenon NDC is a wholly owned subsidiary of Cyprus
Airways Ltd, which provides and distributes electronic
information for the travel industry through SABRE, a
global distribution system.
The turnover of the Company in 2003 remained at
the same level as 2002 of í0,8 million. The company
recorded a profit before tax of í9.200 in 2003 compared
to a profit before tax of í4.600 in 2002.
HELLAS JET S.A.
Hellas Jet S.A. was incorporated in Athens on 1 July
2002 and performed its first flight on 24 June 2003.
The Company’s main activities are the carriage of
passengers and cargo as well as the provision of other
airline services. Cyprus Airways owns 49% of the share
capital of Hellas Jet S.A., with the remaining shares
owned by Omega Bank S.A. (26%) and AEF European
Capital Investments B.V. (25%).
Hellas Jet prepares financial statements for the

9
FINANCIALREVIEW
first time, covering a period of eighteen months from its
date of incorporation until 31 December 2003. During
this period the company recorded a loss of €18,6 million
(í10,9 million). The eighteen month period can be split
into two sub-periods, the first being from 1 July 2002 to
23 June 2003 and the second from 24 June 2003, when
commercial flights started, until 31 December 2003.
During the first period, before commencing
flights, the company obtained the relevant licences and
permits from the Hellenic Civil Aviation Authority,
recruited all necessary personnel, took delivery of its
aircraft, set up its distribution network and offices and all
other necessary tasks needed to enable it to start its
airline operations.
Although the results relate to eighteen months, it
should be noted that the company was only generating
revenues during the second period, i.e. the last 6
months, from the date it started its commercial flights.
Therefore the results of this period can not be taken as
an indication of future performance. Due to this being the
first year of operation, there are no comparative figures.
Revenue
Total Net Revenue reached €17,2 million (í10,1 million).

10
FINANCIALREVIEW
Net revenue from the carriage of passengers
reached €16,3 million (í9,5 million). The company
operated 2,060 flights and carried 137 thousand
passengers. It should be noted that the net revenue from
the carriage of passengers is substantially lower than
what would be expected for a corresponding period of
normal operations for the following reasons:
ñ The company commenced operations in the
middle of the peak season in 2003.
ñ According to the Greek legal framework for air
transportation no advertising is allowed prior to obtaining
all the necessary licenses, therefore the company
resorted to promoting its sales through fare discounting
which affected passenger yields.
ñ Being the first year of operation it was difficult to
attract passengers which resulted in a low number of
passengers being carried.
For the above reasons revenue from the carriage
of passengers for 2004 is expected to be significantly
higher.
Net cargo revenue reached €134 thousand
(í78 thousand). Other revenue reached €813 thousand
(í476 thousand).
Operating Expenditure
Total operating expenditure for the eighteen month
period reached €35,8 million (í21 million). Specifically,
the cost of sales reached €27,0 million (í15,8 million)
whereas administration costs reached €8,8 million
(í5,2 million).

OPERATINGENVIRONMENT
11
INTERNATIONAL
DEVELOPMENTS
2003 was yet another difficult year for the international
air-transport industry.
In addition to the world economic recession and
the negative aftermath of the September 11 2001 events,
the industry had to cope with the war in Iraq and the
SARS epidemic.
According to IATA, international airline traffic
showed a 2,4% decline compared to 2002 and remains
below 2000 levels, something which effectively means
that the air transport sector has lost at least 3 years of
growth. International statistics show a corresponding
downtrend in international tourist arrivals (a reduction of
1,2% in comparison to 2002, according to preliminary
figures of the World Tourism Organisation). In terms of
financial performance, IATA estimates airline losses to be
in the region of $10 billion.
It was unavoidable that the negative global
climate would affect Cyprus’ economy and tourism and
consequently, its air transport sector.
It is estimated that during 2003 there was a 4,8%
reduction in tourist arrivals (added to a 10,3% reduction
in 2002) whilst the growth rate of the economy did not
exceed 2%.
With regard to the total air traffic to and from
Cyprus it reached 6,06 million passengers, or a
reduction of 2,1% in comparison to 2002.
LIBERALISATION
The Government, continued its policy for gradual
liberalisation of the sector before the accession of
Cyprus to the European Union. As a result during the
past year, in addition to wider adverse developments,
Cyprus Airways had to face further liberalisation of the air
services on its very important United Kingdom routes.
OPERATINGENVIRONMENT

12
TRAFFIC&CAPACITY
In spite of a very unfavourable operating environment,
total revenue passengers on Cyprus Airways flights
during 2003 reached 1,7 million which corresponds to an
increase of 2,4% in relation to 2002.
With traffic on the shorter distance routes showing
the highest growth, total revenue passenger kilometres
showed a relatively smaller growth than the revenue
passengers. The increase was in the region of 1,4%, or
from 3.307 million in 2002 to 3.353 million in 2003.
Available seat kilometres increased by 4,8% and
reached 4.738 million while available tonne kilometres
reached 569.6 million (an increase of 6,3%).
Total freight transported during the year reached
17.090 tonnes, an increase of 4,4% in comparison to the
previous year.
Mail traffic reached 1.186 tonnes in comparison
to 1.162 in 2002.
Evidently, the difficult market conditions prevailing
in 2003 did not allow the company to fully utilize the
increased capacity deployed during the course of the
year and which was to a great extent a result of the
PASSENGER LOAD FACTOR
%
completion of the fleet renewal process.
69,9
71,5
70,1
73,1
70,8
As a result, the passenger load factor was down
to 70,8% from 73,1% in 2002, whilst the corresponding
overall load factor declined to 61,2% from 63,7% the
previous year.
1999
2000
2001
2002
2003
1999 2000 2001 2002 2003
PASSENGER TRAFFIC
passengers thousands
AVAILABLE SEAT KILOMETRES & REVENUE
PASSENGER KILOMETRES
4.065
4.175
4.301
4.522
4.738
millions
1.397
1.476
1.506
1.655
1.695
2.840
2.987
3.017
3.307
3.353
1999
2000 2001 2002 2003
available seat kilometres
revenue passenger kilometres
1999
2000
2001
2002
2003

13
TRAFFIC&CAPACITY
CYPRUS AIRWAYS SHARE
OF TOTAL TRAFFIC TO AND FROM
CYPRUS 2003
FREIGHT CARRIED passenger services tonnes
17.363
16.784
17.090
16.271 16.374
1999
2000
2001
2002
2003
Cyprus Airways 27,8%
Eurocypria 8,3%
Other Scheduled Operators 27,4%
Other Charter Operators 36,5%

14
COMMERCIALDEVELOPMENTS
Planning and network strategy remained unchanged.
As in the past, our strategy in this area focused on
increasing frequency on key routes and increasing and
improving connectivity along with selective network
expansion.
The transit passengers continued on a growth
path for yet another year. The recorded increase was
in the region of 18,2%. In the context of its network
expansion plan, twice weekly flights to Colombo
(via Dubai) were introduced as of November 2003.
In relation to the overall market conditions, Cyprus
Airways’ comparatively better performance led to an
increase in the company’s market share by 1,2
percentage points, from 26,6% in 2002, to 27,8% in
2003. The Group’s market share reached 36,1% in
comparison 34,8% the previous year. In this context, it is
worth noting the significant reduction in charter traffic as
the market share of charter operators declined from
49,2% in 2002 to 44,5% in 2003.
From a quick review of trends prevailing in
different markets, it is evident that the most significant
problem facing Cyprus Airways was the weak market
conditions experienced on the Company’s Continental
(European) routes, which in total registered a reduction
in the region of 6,7%.

15
In the two most important geographical markets
on the Company’s network, those of Greece and the
United Kingdom, positive trends were observed, at least
with regard to the number of passengers. There was an
increase of 5,2% on the Greek routes, whilst on routes to
the United Kingdom the increase was 7,4%.
Traffic on the Middle East and Gulf routes, which
makes up almost 14% of the Company’s total passenger
traffic, recorded an increase of 7,8%.
SALES & MARKETING
The unfavourable operating and competitive environment
of 2003, was also reflected in the average achieved yield,
which showed a reduction of 4,2%.
Close market monitoring and price adjustment
initiatives were the norm throughout the year. So were
the special offers, incentives and discounts, which were
no longer confined to traditionally low-season periods
but became part of the mainstream business throughout
the year.
Reflecting the difficult times, business class sales
were down by 9%, which ties in with the wider industry
trend.
In addition, the average yield was affected by
adverse fluctuations in exchange rates particularly those
of the Sterling pound and to a lesser extent the United
States dollar.
As to the wider commercial sector we had,
among other developments, during the year:
ñ The undertaking of a Cyprus wide market
research in order to determine the Company’s position in
relation to customer needs.
ñ The continuation of the successful SunMiles
Frequent Flyer Programme, with services now offered to
members through the Website and Call Centre.
ñ A 20% increase of SunMiles Visa cardholders,
which by the end of the year, totalled 22.527 members.
ñ Replacement of the revenue management system
(AIRMAX) with the new version of the same system.
COMMERCIALDEVELOPMENTS

16
COMMERCIALDEVELOPMENTS
ñ
Enhanced company presence in Global
Distribution Systems (GDS) allowing for automated
updating of seat availability and schedule changes.
ñ
The sponsoring of various high profile
organisations giving significant benefits to the Company.
Specific reference is made here to the Cyprus and British
Olympic Committees for which Cyprus Airways is the
official carrier for the 2004 Olympic Games in Athens.
CO-OPERATION
AGREEMENTS
There is a two-fold focus in this area: Firstly, to locate
credible strategic partners and secondly, capitalising on
tactical arrangements.
On the strategic front, given the fluid world
alliance framework and the state of the industry, no
major steps were taken.
As far as the tactical side is concerned, the
Company renewed its Code-sharing Agreements with all
its existing partners (KLM, Alitalia, Syrianair, Gulf Air,
LOT, El Al, Aeroflot) and signed a new agreement with
SN Brussels Airlines for services operated by Cyprus
Airways on the Brussels route.
In addition, there was a further strengthening of
the network through a Special Prorate Agreement which
either complements the existing codeshare agreements
or offers access to other airline services and therefore
increases the passengers travelling options.
Finally, the commencement of services by Athens
based Hellas Jet allowed for the introduction of several
mutually beneficial agreements. In parallel, a constant
effort is underway to maximise the mutual benefits
between the two airlines.

FLEET
17
∆he most important development during 2003, was the
completion of the fleet renewal process with the
acquisition of a second A330-200, the delivery of four
Boeing B737-800s to Eurocypria and the withdrawal of all
A310s.
As a result, Cyprus Airways’ fleet, at the end of
2003 comprised of two A330-200, eight A320-200 and
two A319-100 aircraft. Eurocypria’s fleet now consists of
four B737-800 aircraft. By the end of 2003, the average
age of the fleet of both companies was seven (7) years.
The various fleet performance indicators, in 2003
was as follows:
ñ
A total of 6.900 flights were operated. These
flights produced 569,9 million available tonne kilometres.
ñ
The average daily utilisation for the A330’s was
11,5 hours, the average stage length was 2.638
kilometres and the average flight duration 3,84 hours.
ñ The average daily utilisation for the A320’s was
8,68 hours, the average stage length 1.451 kilometres
FLEET
and the average flight duration 2,41 hours.
ñ The average daily utilisation for the A319’s was
AVAILABLE & REVENUE TONNE
KILOMETRES passenger services
millions
9,06 hours, the average stage length 1.486 kilometres
and the average flight duration 2,46 hours.
481
496
509
536
570
299 314
314
341
348
ANNUAL HOURS FLOWN passenger services
41.000
38.757
1999
2000 2001 2002 2003
available tonne kilometres
revenue tonne kilometres
32.985
33.320
35.262
1999
2000
2001
2002
2003

18
PERSONNEL
At the end of 2003 the number of permanent employees
totalled 1.611 compared to 1.629 at the end of 2002. The
decrease is attributed to the retirement of staff through
the Early Retirement Scheme, the normal retirements
and/or normal resignations of staff.
The number of staff employed at the Company’s
outstations, including the subsidiary company Cyprair
Tours Ltd, was 184 compared to 177 at the end of 2002.
The increase is attributed to the need to reinforce certain
outstations which had to offer services to the customers
of the newly formed Company Hellas Jet.
During 2003 the number of pilots increased by
two and totalled 138 pilots compared to 136 at the end
of 2002.
In 2003 there has been industrial peace. The
Company and the Unions signed the renewal of the
Collective Agreement until the 31st of December 2006.
Also the Company and the Unions agreed to start talks
aimed at finding ways and means for improving the
Company’s effectiveness and increasing the productivity
of the staff.

19
The staff training and development activities of
the Company continued in 2003 in all aspects of work.
A big part of the training activities of the first part
of the year covered the training needs of the new
Company Hellas Jet for which a comprehensive three
month intensive training programme was organised on
reservations, pricing and ticketing and call centre.
During 2003, intensive working relations with the
Human Resources Development Authority of Cyprus
continued successfully with significant economic benefits
for the Company.
In an effort to upgrade and make more effective
the operation of the Company, external consultants
carried out a project on the various aspects of the
human resources of the Company.
The main objective of the project was to identify
ways and means of better utilization of the human
resources within the framework of the efforts for
continuous improvement of the quality of services to the
customers and the effectiveness of our operations.
The project has been completed and the findings
have been presented to the Management of the
Company.
Appropriate action is being processed on the
basis of the findings.
PERSONNEL

20
INFORMATIONTECHNOLOGY
In the year 2003 the Information Technology Department
successfully continued with its introduction of new I.T.
Systems and the provision of support services for
existing systems, so as to maintain and enable the
smooth operation of the various departments and
companies of the Group.
Some of the noteworthy projects of the year
include:
E-COMMERCE
ñ With functionality, ease of use and security in
online transactions as its key targets, the Company’s
website successfully completed one year of operation.
Establishing itself as an invaluable ‘live’ source of
information and services, it registered more than one
million visits, while online sales exceeded 12.000 tickets,
aligning the Company’s e-services with those of other
european airlines.
ñ Following the implementation of the first phase,
the second phase was also concluded during the
second half of the year, addressing mainly:
ñ Enhancement of the website based on the
feedback and preferences of our customers
ñ Introduction of other related services, such as
online car hire and hotel reservations
ñ Development of websites for the subsidiary
companies, Eurocypria Airlines Ltd., Cyprair Tours Ltd.,
and Hellas Jet S.A.

21
All websites utilise cutting edge technology and
systems for online transactions in real time, which enable
customers to purchase tickets and enjoy the Group’s
services from anywhere in the world, 24 hours a day, 365
days a year.
Regarding the enhancement of electronic services,
relevant studies for the introduction of electronic ticketing
have been initiated.
CALL CENTRE
Aimed at providing timely and quality customer services,
the Call & Web Centre continued its rapid expansion in
2003. The Centre managed over 550.000 customer
contacts, both via phone and e-mail, registering an
impressive increase of 102% over the number of
contacts managed during the previous year.
OTHER PROJECTS
ñ Development and implementation of new systems
for the needs of various departments and companies of
the Cyprus Airways Group and the upgrading of the
Corporate I.T. Network, including its expansion to other
company stations abroad.
ñ Introduction of a new Revenue Management
System for the Marketing Department and a new In-Flight
Sales System for the In-Flight Services Departments of
Cyprus Airways Ltd and Eurocypria Airlines Ltd.
Furthermore, the I.T. Department continued the
process towards the introduction of a Human Resource
Management System for all companies of the Group, a
Security Management Project for all companies of the
Group, and a new system for the two loyalty schemes
(Frequent Flyer and Sunjet Executive Club).
Finally, the Department continued with the
introduction of various systems in subsidiary and
associate companies and in particular in the Duty Free
Shops, Eurocypria and Hellas Jet.
INFORMATIONTECHNOLOGY

22
PRESS&PUBLICAFFAIRS
The activities of the Press and Public Affairs Department
focus on publicising Cyprus Airways’ views and services,
dealing with internal communications and continuing to
promote the Company abroad.
This was achieved mainly through press releases,
interviews, statements and press conferences.
Cyprus Airways was the sponsor of high level
cultural events, thus achieving publicity and contributing
to the cultural life in Cyprus.
The public relations activities of the Company
abroad for the year 2003 were expanded, resulting in
considerable publicity. In the field of internal
communications the Department continued the
publication of the staff news bulletin and the organisation
of various events for the employees and their families.
The Department also dealt with passenger
complaints.

AIRPORTOPERATIONS
23
TERMINAL SERVICES
During 2003, the Terminal Services Department at both
Larnaca and Paphos Airports serviced a total of 9.322
flights as compared to 9.177 in 2002. Of these 6.909 were
Cyprus Airways flights and 2.413 were other operator’s
flights.
The Sunjet Executive Lounge at Larnaca Airport is
considered to be one of the best lounges in the Middle
East area. Cyprus Airways Business Class passengers,
Sunjet Executive Club members, frequent flyers, selected
passengers of other airlines, usually First and Business
Class passengers, make use of the facilities of the
Lounge. During 2003 the number of passengers who
visited the Sunjet Executive Lounge was 83.814.
ENGINEERING &
MAINTENANCE DEPARTMENT
The Department devoted a lot of its attention to the
introduction of the A330 aircraft the first of which was
delivered in December 2002. During the first quarter of
the year all the technical support arrangements for the
fleet were put in place, and the aircraft commenced
operation by gradually taking over the A310 routes.
Simultaneously, the training of all engineers on the A330
aircraft was completed. The second A330 aircraft was
inspected by our engineers and accepted into the fleet
renewal plan. At the same time, the four A310 aircraft were
progressively withdrawn from service. The A310 operation
was completely terminated on the 24th of April 2003.
In November, the Department initiated a major
training programme on the Boeing 737-800 aircraft for all
engineers with a view to undertaking, in the new year, the
maintenance of the Eurocypria new fleet.
New technical handling contracts were signed
with Kuwait Airways and GB Airways for the servicing
and certification of their aircraft transiting at Larnaca and
Paphos Airports, respectively.
AIRPORTOPERATIONS

24
AIRPORTOPERATIONS
INFLIGHT SERVICES
The year 2003 was a year of significant changes in the
Inflight Services Department. The smooth and successful
introduction of our two new Airbus A330 aircraft in 2002
and 2003 ensured that all requirements concerning
comfort and facilities were met. The new A330 provides
comfort and luxury, equipped with comfortable seats and
a modern inflight entertainment system.
The increase of Cyprus Airways flights
necessitated the employment of new cabin crew. The
Inflight Services Department organized an induction
training course in order to introduce to the new recruits
the duties and responsibilities required by the profession.
The training also applied to the rest of the cabin
crew who successfully attended a refresher course on
matters of interpersonal skills and service procedures.
In 2003, a new selection of duty free items was
introduced for sale on all flights. Emphasis has been
given both on Apollo Business Class and Aphrodite
Economy Class menus.
The Catering Service introduced new and lighter
menus on all flights for both Business “Apollo” Class and
Economy “Aphrodite” Class passengers.
CATERING SERVICES
Although 2003 has been a difficult year for the
airtransport industry overall, the Catering Services
Department experienced a 6,5% increase in production,
with a production level over of 2,2 million meals. To
compliment this, the productivity level rose by 6%, while
the number of permanent and seasonal staff was
reduced by 4% and 6% respectively.
Furthermore, the Department fully implemented
the Hazard Analysis Critical Control Points System,
(HACCP), an advanced hygiene system that provides the
most efficient preventative approach and monitors all
stages of production, storage and distribution.

SUBSIDIARY&ASSOCIATED
COMPANIES
25
SUBSIDIARY&ASSOCIATEDCOMPANIES
EUROCYPRIA AIRLINES LTD
2003 was another successful and profitable year for
Eurocypria, despite a 5% reduction in tourist arrivals over
the previous year.
Regardless of a significant deterioration in the
company’s turnover, due to substantial flight
cancellations from almost all tour operators during the
Iraq war crisis, Eurocypria Airlines remained profitable.
This was due to perseverance and intensive efforts on
the part of the company, especially during the second
half of 2003.
Apart from its main markets of the UK and
Germany, Eurocypria maintained an extensive flight
programme from other European and Scandinavian
airports. In accordance with the policy of the Cyprus
Airways Group, the majority of Eurocypria’s flights served
regional airports, offering direct connections between
Cyprus and European provinces and thereby offering a
valuable contribution to the Cyprus tourism industry.
During the first four months of 2003 the company
rolled-over it’s fleet and, by April, had introduced into
service four brand new Boeing 737-800W aircraft.
Cyprus’ entry into the European Union in May 2004,
combined with the introduction of this young fleet, which
retains operating costs at low levels, means that
Eurocypria is already in the process of its ‘action plan’
for entering new European markets in order to maximise
all possible business opportunities.

26
SUBSIDIARY&ASSOCIATEDCOMPANIES
HELLAS JET S.A.
Hellas Jet S.A. was established in Greece in July 2002.
Athens based Hellas Jet begun operating scheduled
flights in 2003 to accommodate the needs of the greek
market. The company’s shareholders and respective
shareholdings are:
Cyprus Airways Ltd 49%
Omega Bank S.A. 26%
AEF (European Capital Investments) B.V. 25%
The company’s philosophy is centered around
the concept of providing a high quality service at a
competitive price. To this extent the modern fleet of three
Airbus A320-232 aircraft are equipped with in-flight
entertainment systems, boast comfortable leather seats
both in business and economy class and an in-flight
service that provides a lot more than one would expect
from a quality schedule carrier. At the same time, Hellas
Jet, being fully aware of the needs and demands of
Frequent Flyer Passengers, has created the Hellas Jet
Club Frequent Flyer Programme.
The company is distributed through its own
offices in Greece and abroad, the travel agent
community as well as through its own dynamic website
(www.hellas-jet.com) and dedicated call centre.
Although the first reporting period for Hellas Jet
spans eighteen months from July 2002 to December
2003 the company started flight operations on the 24th
of June 2003 following a period of intense preparation for
all personnel, the successful delivery of all three aircraft
and, of course, the successful licensing by the Hellenic
Civil Aviation Authority.
During its six months of operation the company
performed more than 2000 flights carrying more than
137.000 passengers on its network, which serves
Brussels (10 times weekly), London Heathrow (daily)
London Gatwick (daily) and Paris Charles De Gaulle (12
times weekly).
The company operates in close co-operation with
Cyprus Airways in order to optimize the use of Group
resources as well as implementing uniform group strategies.
CYPRAIR TOURS
Cyprair Tours, the tour-operating subsidiary of
Cyprus Airways, continued to offer package holidays,
accommodation and flights to Cyprus to the leisure
market in UK.
Emphasis was given to a number of specialised
holidays including beach holidays, spa breaks, mountain
holidays, village houses and villas with private pools,
golfing trips, special interest tours, cruises, multi-centre,
honeymoons and weddings.
Cyprair Tours organised several conferences and
group visits from the UK to Cyprus in 2003 concentrating
on the business and specialist group leisure sectors.
During 2003, which has been one of the most
difficult years ever in the UK holiday industry, Cyprair
carried just under 13.000 passengers to Cyprus from
Heathrow, Gatwick, Stansted, Manchester, Birmingham,
Bristol, Humberside, East Midlands, Newcastle and
Glasgow.
In addition to the main Summer and Winter
holiday brochures, Cyprair has produced a dedicated
Weddings brochure as well as a separate Golf brochure,
thereby enhancing the company’s profile in these
lucrative holiday sectors. The company image has been
upgraded in 2003 with a change of logo and a complete
redesign of the brochures, so as to reflect more closely
the quality of the product on offer, which concentrated
on the 4 and 5 star market. Cyprair has also expanded
its operation with a small programme offering holidays to
Greece on Hellas Jet flights from London. On the
technology front, the company has introduced an on-line

27
booking engine and availability search facility on its
website, enabling travel agents or customers to confirm,
in real time, their entire holiday arrangements.
∑ENON NDC LTD
Zenon NDC Ltd is a wholly-owned subsidiary company
of Cyprus Airways Ltd., which provides quality services to
Cypriot travel agents.
Specifically, Zenon provides and distributes
electronic information regarding airline products, seat
reservations, ticketing, hotels, cars, cruises, etc., through
Sabre, a global electronic reservation system designed
to effectively facilitate the operations of travel agents.
More than 300 travel agencies in Cyprus are
subscribers to the Zenon network, which includes more
than 80% of the IATA Agencies.
Zenon provides the Cypriot travel agent with a
complete range of products including the Sabre Global
Distribution System, Bank Office system, special fare
finder, and Internet booking engine. The Internet booking
engine (Sabre.Res) is the latest product in Zenon’s
product line, giving the ability to the travel agent to sell,
and to compete on a global basis 24-hours per day,
seven days per week.
Zenon’s effort is not only to serve the travel
agents. With Sabre Virtually There, Zenon also serves
the traveller and, at the same time, enhances the
service/product provided by the agent. The System
e-mails the itinerary to the traveller automatically in a
graphical form, and includes other useful information
such as the weather, maps, and other destination
information.
The aim of the company is to constantly strive for
innovation, with a vision to maintain its position as the
premier provider of quality products and services to travel
agents, bringing the right IT solutions to the travel market.
CYPRUS AIRWAYS
(DUTY-FREE SHOPS) LTD
Cyprus Airways Duty Free Shops is a fully-fledged
dynamic corporation in the duty free sector, offering an
extensive range of duty free items from the world’s most
prestigious brands. Since it’s establishment in 1996, it
has continued to show a steady increase in sales year
after year.
During 2003 five new shops were set up to cater
for the needs of company’s numerous and demanding
clientele. Currently, CADFS include a total of fourteen
different shops in both international airports at Larnaca
and Paphos.
2003 was a difficult, yet challenging year for the
travel retail industry. Despite the decrease in passenger
traffic, the company continued its excellent performance
in 2003. It is also very important to mention that the
spending rate per passenger has risen to the high level
of í18,78, one of the highest in duty free consumption
worldwide!
During specific periods, CADFS, in co-operation
with Laiki Bank and Hellenic Bank, offered their clients a
20% discount on purchases that exceeded í100.
Furthermore, customers who paid for their purchases
with Sun Miles Visa, were given the privilege to earn
20 points per pound spent in the shops.
2003 was a pivotal year for the company.
CADFS’s aim was to upgrade the quality of its work and
services as well as to prepare for the new beginning of
CADFS after the EU accession of Cyprus. As a starting
point for this new beginning, it was decided to invest in a
new information technology system - software and
hardware - in order to upgrade the effectiveness and
efficiency of business. Strategic objectives and
requirements were clearly identified and new improved
marketing activities were introduced and human
resources infrastructure developed.
SUBSIDIARY&ASSOCIATEDCOMPANIES

28
NOTICEOF
ANNUALGENERAL
MEETING
NOTICEOFGENERAL
MEETINGOFTHE
PRIVATE
SHAREHOLDERS
Notice is hereby given that the FIFTY-SEVENTH
ANNUAL GENERAL MEETING of Cyprus Airways Limited
will be held at the Cyprus International Conference Centre
in Nicosia, on Wednesday, the 26th day of May 2004, at
5.30p.m., at which the following business will be
transacted:
ñ to receive and consider the report of the directors
and financial statements for the year 2003 and the
auditors’ report thereon.
ñ To fix the remuneration of the directors.
ñ To fix the remuneration of the auditors.
Directors will be elected at a separate meeting of
the Private Shareholders of the Company in accordance
with the Articles of Association.
A member entitled to attend and vote at the
Annual General Meeting is entitled to appoint a proxy to
attend and vote instead of him and such proxy need not
be a member of the Company. The instrument
appointing a proxy must be deposited at the Head Office
of the Company in Nicosia, at least 48 hours prior to the
time fixed for the meeting.
By Order of the Board
George Spyrou, Secretary
Nicosia, 29 March 2004
Notice is hereby given that a General Meeting of
the Private Shareholders of the Company will be held at
the Cyprus International Conference Centre in Nicosia,
on Wednesday, the 26th day of May 2004, at 6.30p.m.,
to elect directors to fill three (3) vacancies in the Board of
the Company.
Messrs George Kallis, Kikis Lefkaritis and Pavlos
Photiades who were elected as Directors at the General
Meeting of the Private Shareholders on 11 June 2003,
retire on 26th May 2004.
A Private Shareholder entitled to attend and vote
at the meeting is entitled to appoint a proxy to attend
and vote instead of him and such proxy need not be a
member of the Company. The instrument appointing a
proxy must be deposited at the Head Office of the
Company at least 48 hours prior to the time fixed for the
meeting.
Eligible to be nominated for election, will be any
person or persons in respect of whom a notice to that
effect shall have been delivered to the Head Office of the
Company in Nicosia, at least three (3) days and not
more than twenty-one (21) days before the date fixed for
the general meeting. (For more information on this
subject, interested parties may contact the Company’s
Secretariat - Telephone No. 22396275.)
By Order of the Board
George Spyrou, Secretary
Nicosia, 29 March 2004