The European Union is ready to pay to establish air links with Cyprus
Statement by the Minister of Transport, Communications and Works on introducing a New Incentives Scheme for Airline Companies
The Minister of Transport, Communications and Works wishes to express his satisfaction at the approval by the European Commission of the implementation of an Incentives Scheme for airline companies in addressing the consequences of Covid-19.
The aim of the Scheme is to restore the connectivity of Cyprus with Europe and the rest of the World and to support the economy of Cyprus.
The cost of the Scheme is estimated at €6.3 m for the period until the end of the year and 1.1 m passengers and around 60 airline companies are expected to benefit from it. The amount of the subsidy will be granted on the basis of the aircraft’s filled capacity.
The Minister of Transport, Communications and Works wishes to thank the European Union for the immediate consideration and approval of the request, as well as the officers of the Ministry of Transport for the documented submission of the request and their immediate response to the questions raised by the European Commission.
The scheme was approved under the State aid Temporary Framework. Under the scheme, the support will take the form of direct grants of up to €800,000 per company and will be accessible in a transparent manner to all interested airlines operating routes to and from Cyprus.
The level of remuneration will depend on the aircraft’s load factor (that is, the number of passengers on board divided by the capacity of the aircraft in passenger numbers), starting from a load factor of 41% and up to a 70%, and it will be paid per each transported passenger.
The aim of the scheme is to incentivize airlines in order to re-establish air routes from/to Cyprus and thus enable the recovery of air connectivity and tourism and broadly support the general economy and development of the island by providing support to airlines in a comprehensive and non-discriminatory manner.
It is designed to support the air transport and tourism, sectors that have been particularly affected by the coronavirus outbreak.
