Olympic Air and Cyprus Airways on Tuesday announced they would join forces in the framework of a wide-spread cooperation to deal with increasing competition and a crisis hitting the air transport sector along with strengthening their presence in the wider Southeast European market.

Under the agreement, signed by the chairmen of the two airlines, Yiannis Karadakas and George Mavrokostas respectively, the two airline companies will operate code-sharing flights. The partnership will begin March 27 with code-sharing flights connecting Athens, Rhodes, Heraklion (Crete) and Thessaloniki with Limassol and Paphos. The code sharing agreement will expand from April 15 covering all 38 destinations included in Olympic Air's and Cyprus Airways' flight schedule programs.

The agreement also covers other sectors of operations, such as handling services, VIP lounges and more efficient management of airport infrastructure.