Nicosia, Cyprus. Cyprus’ air connectivity will not be affected by the revision of European state aid rules for aviation, the Transport Ministry said on Sunday, adding that the country’s existing airline incentive schemes operate on market terms and do not constitute state aid.
Position submitted to European Commission
The ministry said the Republic of Cyprus has already submitted a documented position to the European Commission as part of the ongoing public consultation on the revision of the European Guidelines on State Aid to Aviation.
It said Cyprus put forward six specific recommendations aimed at protecting the connectivity needs of island member states.
Existing schemes and connectivity
“Cyprus’ air connectivity remains strong,” the ministry said, adding that the government is acting in a timely and documented manner to ensure that the new European framework continues to reflect the needs of an island state with no road or rail links to the rest of Europe.
The ministry clarified that the incentives provided by Cyprus, in cooperation with the airport operator, to airlines are not state aid, as they are granted on market terms, generate additional revenue for both the state and the operator, and represent an investment that a private investor would also make under the same conditions.
As a result, it said the revision of the European framework does not raise any issue regarding the existing mechanisms that have supported the steady improvement of Cyprus’ air connectivity in recent years.
European review and Cyprus’ concerns
The review forms part of the European Commission’s effort to update aviation state aid rules in light of changes in the sector, including new environmental requirements and developments in the European aviation market.
The consultation concerns the conditions under which member states may support airports and new air routes.
The ministry said that for Cyprus, the matter is not simply technical. As an island member state, air connectivity is a core national infrastructure issue, supporting citizens, tourism, business activity and the wider economy.
Recommendations on airport support and new routes
The government’s first recommendation is for Cyprus’ airports to be treated more clearly as “territorial cohesion infrastructure”.
The ministry said the European Commission already recognises Cyprus as a “remote area”, but Nicosia wants this to be reflected more explicitly in the new rules, so that Larnaca and Paphos airports can receive state support when there is a genuine need.
Cyprus is also calling for targeted incentives for new routes to island states to be maintained, particularly for winter routes and connections with new tourism markets.
According to the ministry, this would help increase off-season flights, diversify tourist flows and reduce dependence on specific markets.
Proposal on smaller member states
A third recommendation concerns the fair treatment of smaller member states.
The ministry said an airport handling nine million passengers in a country of 900,000 people should not be treated in the same way as an airport in a large European city.
Cyprus has therefore proposed the inclusion of a “passengers-per-inhabitant” criterion.
