Former Prime Minister Alfred Sant said the option suggested by the European Commission to compensate for the loss of routes that were serviced by Cyprus Airways, following the latter’s closure, is not a realistic one.
Dr Sant was reacting to a reply given by the European Commission to a parliamentary question in which he asked for information about the routes formerly operated by Cyprus Airways that were no longer in service. European CommissionerVestager mentioned that such routes could be placed under a public service obligation agreement. However this would be a burdensome approach that would reduce the flexibility that island and other peripheral destinations must retain to promote their tourism. Once again it is being shown that the blind application of state aid rules to peripheral islands and regions is inappropriate.
Dr Sant asked the Commission to specify which of Cyprus Airways flights have been axed as a result of the restructuring programme allowed by the Commission. He asked the Commission to provide information on whether said flight routes, as well as those left vacant following the airline's closure, had been taken over by another airline. He asked the Commission to provide information on whether it will allow State/EU intervention in cases where no airline has been interested in taking over a route left vacant by Cyprus Airways, and, if so, how this could be achieved.
Ms Vestager said that several operators, including Aegean and Ryanair, have announced an increase in their activities to and from Cyprus and introduction of new routes since Cyprus Airways ceased operations. However, Ms. Vestager, said the Commission was not systematically monitoring which specific flights have been added or expanded by individual airlines.
Ms Vestager said that EU member states wishing to ensure operation of vital air transport routes may use the possibility to establish public service obligations meeting the requirements of the EU's air services regulation. If any intervention were to involve state aid, the compatibility with EU state aid rules would need to be assessed based on the details of the intervention of the individual case.
Following the Commission's decision of 9 January 2015 declaring the restructuring aid to Cyprus Airways as incompatible and ordering its recovery, Cyprus Airways stopped operations and discontinued all its flights as of the same date.