Cyprus Airways said on Tuesday its Swissport unit agreed a cooperation deal with airport operator Hermes Airports to run ground handling services at Cyprus's airports.
Swissport Cyprus, which is 25 percent owned by Cyprus Air and in which Swissport GAP Vassilopoulos has a stake, signed a deal with Hermes to take over ground handling operations at the island's Larnaca and Paphos airports.
"We have received one of the two licenses for ground handling and we start operations in May," a spokesman for the airline said.
Unions initially opposed the deal over fears of job losses and threatened strikes.
Cyprus Airways, 70 percent state owned, returned to profit in 2007 after suffering heavy losses over the previous years. The company is in the process of an EU-sanctioned restructuring plan.
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