Insider Business €1m boost from state for Cyprus Airways

€1m boost from state for Cyprus Airways

Cabinet has approved €1 million in compensation for Cyprus Airways for losses sustained because Turkey prohibits Cyprus-registered airplanes from using its airspace, thereby making flights longer and more expensive.

As Petros Theocharides reports for Phileleftheros, the Council of Ministers had last week reversed a previous decision terminating an EU-approved support scheme compensating Cyprus airlines for additional costs they face as a result of Turkey’s actions compared to the competition.

The scheme was approved by the EU in 2011 for 10 years, and up to its closure, the state owned airline Cyprus Airways  (not the current holder of the name) had received €21.2 m.

In January 2019, new Cyprus Airways applied for compensation of €800,000 for additional direct expenditure in 2017 and 2018 because of the Turkish embargo.

An application for €2.5 m was also pending from Cobalt before it closed.

In May 2019, the government decided to end the scheme early. It normally expired at the end of 2020, with the possibility of renewal.

In August 2019, Cyprus Airways filed a law suit against the government’s decision. In October, under the pressure from the suit and lobbying from the Russian investors in the airline who consider the policy unfair discrimination, the government promised to reconsider.

At its last meeting, amid the impact of the coronavirus pandemic on airlines, it revised its decision and approved €1 m which includes estimated compensation for 2019.

 

Top Stories

Unrest flares in U.S. cities despite arrest of Minneapolis policeman

The white former Minneapolis police officer shown in video footage using his knee to pin an unarmed black man's neck to the street was...

MPs set to approve tougher penalties to crack down on traffic offenders

  Traffic offenders will need to dig deep into their pockets under long-awaited tougher penalties set to be approved by the House of Representatives by...

Five catering establishments booked for breaking decree

  Five catering establishments in Paphos and Polis Chrysochous have been booked for breaking the Health Minister's decree governing their operation under the quarantine law...

Fire causes extensive damage to Pissouri restaurant

  A fire that broke out at a restaurant in Pissouri early on Saturday money caused extensive damage, the fire service said. It said that fire...

Trump cutting U.S. ties with World Health Organization over virus

The United States will end its relationship with the World Health Organization over the body's handling of the coronavirus pandemic, U.S. President Donald Trump said on...

Taste

Local cuisine: An introduction

Rich in fresh ingredients and tasty herbs, offers the very best of Mediterranean culinary delights. Head out to a tavern and feast on a...

Spiced lamb with beetroot salad and scented yoghurt

Lay the lamb on a tray, skin side down. Rub with crushed garlic, sprinkle with spices and ground pistachios, wrap in plastic wrap and...

Easy seafood pasta with white wine sauce

Ingredients: 2-3 tbsp olive oil 1 garlic clove, chopped 2-3 tablespoons of whipped cream 1/3 cup white wine 300g spaghetti, roughly broken 300-400g of...

Traditional salads that will blow your mind away

This traditional salads will make you actually love salads! Cyprus may be famous for souvla and kleftiko but if you try the traditional salads with...