Cyprus Airways Brussels demands repayment of aid … – Boursorama

Cyprus Airways Brussels demands repayment of aid … – Boursorama

A plane of the Cyprus Airways Cyprus company at Larnaca airport in Cyprus, 25 April 2013 ( AFP / File / Yiannis Kourtoglou)

The European Commission on Friday ordered Cyprus to recover state aid granted to the national carrier Cyprus Airways, for an amount of about 65 million , threatening the survival of the company.

“The European Commission has concluded that a restructuring aid program, worth over 100 million euros for Cyprus Airways, the national airline of Cyprus in difficulty, has given it an unfair advantage over its competitors, in breach of EU rules on state aid. Cyprus Airways must repay any aid incompatible with the single market it has received, “according to a statement.

The amount to be repaid, however, should be about 65 million euros, told AFP a source at the Commission.

The Cypriot Minister of Communications, Marios Demetriades, warned Thursday that if the Commission demanded repayment of the aid, “if necessary, the company would not no choice but to suspend operations. “

” Cyprus Airways has benefited from substantial public funding since 2007, but failed to restructure and become viable without the continued support of the state, “said in a statement the European Competition Commissioner, Margrethe Vestager.

” Therefore, inject more public money would only prolong the struggle (for survival the company) without changing the situation, “she added, explaining that companies” can not and should rely on taxpayer money to stay artificially on the market. “

the aid in question consist of a capital contribution and rescue loans paid in 2012 and 2013.

In 2007, the Commission approved state aid to the company of $ 95 million euros. But the European rules on competition stipulate that a company can benefit from restructuring aid only once over a period of 10 years.

In addition, in its investigation, the Commission “found that Cyprus Airways restructuring plan was based on unrealistic assumptions”, even as state aid which the company has benefited repeatedly “have already given it a considerable economic advantage over its competitors” .

The Cypriot government, which owns 93% of Cyprus Airways launched a tender for the purchase of the carrier, but the proposals of the Irish Ryanair and Greek Aegean Airlines were rejected because considered ” frivolous. “

Mr. Demetriades did not say Thursday how soon Cyprus Airways may cease to operate, but assured that plans are in place to ensure the communications of the Mediterranean island.

Faced with strong competition trips to London and Greece, the company in trouble since 2009, has already eliminated positions, sold a number of assets, including three slots at London Heathrow and several aircraft, but it did not halted its losses.

According to the latest available figures, in 2012, Cyprus Airways had suffered a net loss of 55.8 million euros, more than double the previous year.

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