Cyprus Airways shuts after EU order to repay state aid
The national airline of Cyprus has ceased operations after the European Commission ordered that it must repay €65 million in illegal state aid.
The Commission ruled that the airline, which has been losing money for some time and is 94% government-owned, must pay back €65m of the €103m that it received in state aid in 2012 and 2013. The airline has been receiving money from the government since 2007.
Harris Georgiades, the country’s finance minister, announced today that the airline cannot repay the money and that it would cease operations immediately. An administrator will be appointed to wind down the company. He said that the government will either reimburse ticket holders or cover the costs of alternative travel arrangements.
“The company has ceased being a viable entity, and cannot continue to operate,” Georgiades said.
The European Low Fares Airline Association said it will provide seats for stranded passengers at special rates.
