Cyprus Air shares to be delisted from CSE on Jan 13

Shares of Cyprus Airways will be delisted from the Cyprus Stock Exchange on January 13, bourse authorities said on Friday, in a fresh blow to the ailing carrier that is under EU scrutiny over concerns that it received illegal state aid.

Cyprus Airways, which is majority-owned by the state, had failed to submit financial reports and results in 2012, 2013 and for the first half of 2014, a stock exchange statement said.

Significant obligations of the company had not been observed, placing investors at risk, the statement added.

The European Commission is investigating whether the airline received state aid in contravention of EU rules on two occasions: a 73-million-euro rescue package in 2012 and a 31.3-million-euro capital increase in early 2013.

Attempts to find a strategic investor for the carrier, which employs about 500 people, flopped last year.

The timing of the EU ruling is unclear, but it has been widely reported that the company could face imminent closure if it is forced to repay the money it received.