State aid: Commission approves €6.13 million Cypriot incentive scheme towards airlines affected by the coronavirus pandemic

The scheme is a re-introduction of an aid measure initially approved by the Commission on 1 July 2020 (SA.57691), which expired on 31 December 2021. Under the scheme, the support will take the form of direct grants. The measure will be open to all interested airlines operating routes to and from Cyprus. The level of remuneration will depend on the aircraft’s load factor (that is, the number of passengers on board divided by the capacity of the aircraft in passenger numbers), starting from a load factor of 41% and up to a 70%, and it will be paid per each transported passenger. The aim of the scheme is to support airlines in a comprehensive and non-discriminatory manner in order to re-establish air routes from/to Cyprus and thus enable the recovery of air connectivity and tourism. The Commission found that the Cypriot scheme is in line with the conditions set out in the Temporary Framework. In particular, the aid (i) will not exceed €2.3 million per beneficiary; and (ii) will be granted no later than 30 June 2022. The Commission concluded that the measure is necessary, appropriate and proportionate to remedy a serious disturbance in the economy of a Member State, in line with Article 107(3)(b) TFEU and the conditions set out in the Temporary Framework. On this basis, the Commission approved the measures under EU State aid rules. More information on the Temporary Framework and other actions taken by the Commission to address the economic impact of the coronavirus pandemic can be found here. The non-confidential version of the decision will be made available under the case number SA.101311 in the State aid register on the Commission’s competition website once any confidentiality issues have been resolved.