InsiderEconomyCabinet approves six-month extension of an incentives scheme to airlines

Cabinet approves six-month extension of an incentives scheme to airlines

The Cabinet approved a proposal by the Ministry of Transport for a six-month extension of an incentives scheme to airlines to address the effects of the COVID-19 pandemic on the connectivity of Cyprus.

Announcing a series of Cabinet decisions, Transport, Communications and Works Minister Yiannis Kasouros said the six-month extension of the current temporary Incentives Scheme complies with the temporary framework for relaxation of state grants approved by the European Commission, ending end of December.

The European Commission, he said, decided to extend the provisional Plan and the relaxations by six months, as well as an increase in the ceiling and “that is why we have prepared and submitted to the Council of Ministers a relevant proposal to extend the existing Plan we are implementing so that it is in line with the conditions and limits set by the European Commission”.

He said the current incentives scheme has been deemed as “very effective” and has been successful as data indicates that in 2021 there were flights to 158 destinations while in 2019 150.

In 2021 there were 62 airline companies working in Cyprus compared to 70 in 2019 and we have flights to 40 countries and at the same time, one of the lowest flight reductions in Europe, said Karousos.

The Cabinet also approved 25-thousand-euro funding for the A’ Technical School in Nicosia to plan and create an electric vehicle. The decision was taken within the government’s framework to support the use of electric cars.

Top Stories