THE Cypriot Finance Minister has warned Cyprus Airways (CY) could be forced to shut down by April if the country’s parliament fails to approve €20 million ($27.5 million) expected compensation following Turkey’s ban on Cypriot civil aviation using its airspace.
And the minister, Charilaos Stavrakis, warned that even if the funds are approved there are no guarantees for the airline’s future.
The government has made a request for the immediate release of the funds but Stavrakis told reporters: “Outside factors are unpredictable and there are serious concerns that the airline’s future is doubtful. But weighing the very negative consequences its closure will have on the economy, we need to try and keep it afloat.”
Another problem to add to CY’s woes is uncertainty over whether the European Commission will allow the €20 million to be given as EU member states are banned from offering reinforcements to public or private companies without EU permission.
Stavrakis said Turkey banning Cypriot flights from its airspace created a serious distortion in CY’s competitiveness.