The government has expressed regret at the termination of the operations of Cyprus Airways, assuring at the same time the airline`s staff that it would support them.
“Unfortunately, this was an inevitable outcome, bearing in mind all that has happened over the years under various government, management and employees of the airline,” Acting Government Spokesman Victoras Papadopoulos said, a day after the government announced the end of operations by the Republic`s national carrier.
First and foremost, he said, the illegal state aid, amounting to millions of euro, granted to the airline by the previous government in 2012, without the approval of the European Commission on Competition was the primary cause that led to the closure of the airline.
Today, he explained, the Commission says Cyprus Airways must return the money back to the state, something which under the current circumstances is impossible.
“We have tried very hard to avert the closure of the airline but unfortunately this was not possible,” he said in statement in Limassol, adding that the government will make sure that employees will receive all that is due to them in terms of pension and provident fund benefits.
The government had bought the name and the logo of Cyprus Airways, he explained, adding that efforts will be made to establish a new Cypriot company, privately owned, bearing the name and the logo (the Cypriot mouflon).
On Friday evening Cypriot Finance Minister Harris Georgiades announced that ailing national air carrier Cyprus Airways will stop its operations following a European Commission decision that the company has to pay back €66 million of state aid it had received in the past.
“The European Commission decision means that the company is no longer considered to be an active economic entity and will immediately lose its license,”said Minister of Finance.
The EU said the state aid, granted to the airline, was illegally given and in breach of EU regulations.