NewsLocalGovernment reconsiders decision to suspend scheme incentivizing airlines

Government reconsiders decision to suspend scheme incentivizing airlines

The government is having second thoughts on its sudden decision to suspend the scheme to incentivize airlines in order to re-establish air routes from/to Cyprus and, thus, enable the recovery of air connectivity and tourism.

This is what Philenews reported on Friday, citing insiders from both from the ministry of finance and that of transport.

The suspension earlier in the week was in response to harsh criticism over alleged unprofitable incentives discussed between Hermes – the island’s airports operator – and the state.

The accusations came from the Audit Service and opposition MPs following debate on the second phase of projects at both Larnaca and Paphos  airports.

Specifically, a compromise proposal negotiated by the government and Hermes which seems to have asked for the extension of the airport concession contract until 2036.

However, the decision to suspend the scheme raised  strong reaction from tourism agents and the Cyprus Chamber of Commerce and Industry (KEVE).

In fact, KEVE backed the position of Hermes Airports that incentives are even more necessary today considering the consequences of the invasion in Ukraine.

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