In its early years Cyprus Airways was operated effectively as a subsidiary of BEA, not only in its ownership structure, but in its use of BEA crew and cabin staff, and BEA aircraft. In part this was due to restrictions placed on BEA by the British government on serving destinations further east than Cyprus, as such routes were considered the preserve of BEA's rival, British Overseas Airways Corporation (BOAC), although both BEA and BOAC were state-owned airlines at the time. With its control of Cyprus Airways, BEA was able to serve key destinations in the Middle East, including Beirut and Cairo, using Cyprus Airways, whilst maintaining the pretence of not flying beyond Cyprus. Paradoxically it was continuing disputes between BEA and BOAC over this issue that led to the first proposals in 1953 to merge BEA and BOAC to form British Airways.