No decisions have been taken on the future of Hellas Jet, a Greece-based subsidiary of troubled national carrier Cyprus Airways, the company said on Thursday.

Press reports have suggested Hellas Jet, which flies between Athens and European destinations, was on the brink of closure. The reports were speculative, Cyprus Airways said in a statement to the stock exchange in Nicosia.

Crippled by cheaper competition, Cyprus Airways is waiting for the European Union to approve an urgently needed cash injection guaranteed by the government.

The state, a 60 percent-plus stakeholder in the carrier, has sought European Commission approval to guarantee a EUR50 million (USD$64.8 million) emergency loan which the carrier wants.

It also seeks an additional EUR50 million in restructuring aid.

Cyprus Airways clocked up CYP36.9 million Cyprus pounds (USD$81.8 million) in losses in 2004, when it was hit by the full brunt of a deregulated European flight market.

A survival plan includes redundancies of up to 10 percent of the 2,000 workforce and possible disposal of subsidiaries, including Hellas Jet.