The European Commission has approved a €6.3 m incentives scheme to boost Cyprus’ air connectivity in the wake of the coronavirus pandemic.
The decision was quickly welcomed by Transport Minister Yiannis Karousos who said that about 1.1 million passengers and some 60 airlines are expected to benefit from the scheme through to the end of the year. Subsidies will be paid out depending on their load factor. There is a maximum of €800,000 payment per airline.
“The aim of the scheme is to restore Cyprus’ connectivity with Europe and the rest of the world and to support the Cyprus economy,” the minister said.
He thanked the Commission for promptly examining the scheme as well as ministry officials for their substantiated application to the EU.
The scheme was approved by the Council of Ministers on June 10.
Karousos said at the time that incentives will be offered to airlines based on their load factor. Airlines will be subsidized only if they have a load factor of at least 40% and the calculation will be made based on the number of passengers between 40% and 70% of their capacity.