Cyprus Airways Shuts Down After EU Ruling

By Paul Riegler on 11 January 2015
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DSC_0502Cyprus Airways announced it had ceased operations following notification from the European Union that it must repay over €65 million ($76.6 million) in illegal state aid.

The EU Commission ruled that the Cypriot government had breached rules on support for struggling companies by giving repeatedly giving the airline aid between 2007 and 2013.  The government currently owns 93% of Cyprus Airways and has been looking for outside investors.

The Commission said that the airline’s restructuring plans were based on “unrealistic assumptions” and had failed to address the root cause of the airline’s problems.  The plans were also taking longer to implement than EU rules would allow.

On Friday, the airline said it had opted for voluntary liquidation and that “all operations of the company will be suspended as of the close of business today” in a message on its website.  It also thanked its customers for their support and its staff for its “professionalism and dedication.”

The flag carrier was founded in September 1947 as a joint venture between the Colonial Government of Cyprus, British European Airways, and private investors.  It began operations on April 18, 1848 with three Douglas DC-3 aircraft.

The airline was featured numerous times in the BBC documentary television series, Airport, which was broadcast between 1996 and 2008

(Photo: Accura Media Group)

Accura News

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