Cyprus waves goodbye to national carrier

Move follows European Commission decision

Following a decision by the European Commission that a €100 million state aid package was against the rules, the government of Cyprus said it had no option but to pulled the plug on crippled national carrier Cyprus Airways.

The carrier had been ordered to pay back €65 million plus interest. The government is now implementing arrangements for passengers who have tickets.

“Cyprus Airways has received large quantities of public money since 2007 but was unable to restructure and become viable without continued state support,” Commissioner Margrethe Vestager, in charge of competition policy, said.

“Therefore, injecting additional public money would only have prolonged the struggle without achieving a turn-around. Companies need to be profitable based on own merits and their ability to compete should not rely on taxpayer money to stay in the market artificially.”

Ryanair, which had previously made an approach for the airline, said it would offer special fees for stranded passengers.

TTG Digital

[pictured: Cyprus Airways engine in sunset; photo courtesy Cyprus Airways]


Check Also

Ryanair, Brexit, O'Leary, management, Jacobs, Bellew, EU, UK, flights, grounded, planes, routes, USA, open skies

Ryanair threatens to ground flights over Brexit

Ryanair’s CEO threatens to ground flights in an anti-Brexit tirade, but then the CMO says this won’t happen.

Frankfurt, charges, airlines, airport, Main, Hahn, low-cost, Ryanair, Lufthansa, base, aircraft

Ryanair shifts more routes to Frankfurt Airport

Planes are disappearing from Frankfurt-Hahn since the sale of the airport to China’s HNA Group.

Emirates, Ryanair, Flybe, Austrian, Virgin, British Airways, easyjet, American Airlines, airlines, load factor, PLF, fullest, planes, aircraft, environment, business, profit

Airlines with best and worst load factor

Flying planes full makes airlines far more profitable, and it’s better for the environment.

Ryanair, Brexit, O'Leary, shareholders, sell, UK, EU, deal, shares, citizen

Ryanair may force UK shareholders to sell

CEO Michael O’Leary believes such a move may arise to avoid Ryanair being grounded after Brexit.

Ryanair, Brexit, O'Leary, management, Jacobs, Bellew, EU, UK, flights, grounded, planes, routes, USA, open skies

Ryanair to return to Copenhagen?

A representative of the low-cost carrier meets Danish unions ahead of setting up a possible base.

TAP, seating, Ryanair, investigation, CAA, civil, UK, seating, families, split, fee, pay, ancillary, rules, groups

Airlines investigated over seating policy

Airlines flying to or from the UK will be investigated because families and groups are split up on board.