You are here

CAIR: State support or closure

18/06/2012 11:48
Government is once again in dilemma for Cyprus Airways.

Last year, the national carrier received €20 million from the tax payers. This year, it runs the risk of closing again if no state support is granted against the Turkish embargo.

CAIR Executive Chairman, Giorgos Mavrokostas told the House Finance Committee that the company faces cash problems.

To solve them, the Parliament must approve a compensation of €5 million to proceed with its restructuring plan.

“We have to keep Cyprus Airways open until we find and investor”, Mr. Mavrokostas said.

On the other hand, State Aid Superintendent, Christos Andreou said that the €5 million plan will be approved by the EU Competition Commission. “The amount paid by the state should not exceed the Company’s losses from to the Turkish embargo”, he said.

As for the share capital increase of €45 million, Mr. Andreou said that Friday the European Commission after examining the data sent by the government, tends to conclude that the share capital increase is not considered as state aid.

According to the Superintendent, in its reply the EC referred to government’s commitment to contribute to the share capital increase as well as the participation of private investors.

In fact, it indicated that if the existing private shareholders will not participate, other private shareholders must do so.