Cyrpus Airways shuts down after EU says it must repay state aid
The Cypriot government on Friday announced the suspension of operations of Cyprus Airways, after the EU said that it must repay over 100 million euros in illegal state aid it received in 2012.
Finance Minister Harris Georgiades said the EU decision affectively revokes the flight license of the airline. "The last employees will receive all the salaries they are entitled to and the government will cover the deficit of the carrier's insurance fund," Georgiades added in an effort to reassure the hundreds of company employees.
The remaining Cyprus Airways flights will be served by other carriers, but the last flight of Cyprus Airways will depart this evening from Athens and will land at Larnaka. Georgiades also said the government is considering launching a new airline with the same name and logo.