Pilots of Cyprus Airways will stage a five-hour strike on July 21, which has been condemned as a move that could further plunge the ailing airline into a new financial crisis, local media reported on July 18.

The brief strike will affect about 1,200 passengers on four flights to and from Paris, London, Manchester and Athens.

Andreas Georgiou, head of the pilots' union, claimed that the restructuring plan simply calls on the airline employees to pay the price for failed attempts to make the national carrier profitable.

But the flag-carrier expressed "surprise" and strongly condemned the unexpected work stoppage, which will take place during the summer peak tourist period.

"Such moves achieve nothing but causing a lot of hassle to passengers and affect adversely the prestige of the airline, resulting in additional financial crisis," the Cyprus Airways said in a press release.

The airline added that the company's financial situation does not permit it to give its staff any new benefits at this stage.

Cyprus Airways posted a net loss of 4.3 million Cyprus pounds (about US$10 million) in 2006, although the situation had improved since 2005, when net losses were 22.6 million Cyprus pounds (about US$52.6 million).

The airline signed a loan agreement in May with Hellenic Bank for EUR78 million (about US$106 million) to help it pay off previous loans and improve its finances.