Global Airport News
Cyprus Airways needs EUR€20 million to compensate for the trouble caused by flying around Turkey, if it doesn't it could close as soon as the end of April, Finance Minister Charilaos Stavrakis said.
However, Starvrakis added that the aid would not necessarily resolve the problems at the troubled national carrier.
Stavrakis said that the flight ban over Turkey was harming the airline’s competitiveness, whilst rival airlines could fly to and from St Petersburg and Moscow with lower fuel costs and shorter flying times.
He has said that more than 1,000 people would surely lose their jobs if parliament did not approve the special fund, adding that the losses for the tourism industry and the economy in general would be far greater.
He also added that pending approval from the European Commission, any other airline in the future that would be based in Cyprus that would need to divert its flights around Turkey, may also seek similar compensation.
Cyprus Airways is almost 70 percent state controlled and the main operator of scheduled flights to Cyprus. The authorities have previously warned it faces losses of approximately EUR€30 million for 2010.
Its board is due to review preliminary financial results on Friday 25th February.