FINANCE

EU nod to Cypriot cash for airlines

EU nod to Cypriot cash for airlines

The European Commission has approved a 6.13-million-euro Cypriot incentive scheme geared to support airlines affected by the coronavirus pandemic, having found it to be in line with the Temporary State Aid Framework of the European Union.

The scheme, which will take the form of direct grants, will be open to all interested airlines operating routes to and from Cyprus.

According to the press release, “the level of remuneration will depend on the aircraft’s load factor (that is, the number of passengers on board divided by the capacity of the aircraft in passenger numbers), starting from a load factor of 41% up to 70%, and it will be paid per transported passenger.”

“The aim of the scheme is to support airlines in a comprehensive and non-discriminatory manner in order to re-establish air routes to and from Cyprus, therefore enabling the recovery of air connectivity and tourism,” the press release notes.

The scheme has been found to be in line with the conditions set out in the Temporary Framework since it will not exceed €2.3 million per beneficiary and will be granted no later than June 30. Brussels has deemed the measure necessary and appropriate.