Cyprus Airways posted losses of €55.8 million last year
The government of Cyprus is prepared to inject €17 million into the national airline Cyprus Airways to prevent it from going bankrupt. The airline posted losses of €55.8 million last year.
The government is stepping in after talks with a Chinese investor appear to have failed, according to press reports. However, Cyprus will need clearance from the European Commission to implement the bailout.
A plan to restructure the airline will be presented to the commission in the near future, but the EC may well oppose the move. Earlier this year, in an inquiry into a “capital increase” at the airline, the commission said it doubted “whether these measures are in line with EU state aid rules”.
TTG Digital / The Sunday Times
[pictured: Cyprus Airways engine in sunset; photo courtesy Cyprus Airways]