Filenews 18 February 2022
The European Commission has found that a Cypriot incentive programme amounting to €6.13 million has been set aside for airlines affected by the coronavirus outbreak is in line with the State aid temporary framework.
The programme is a reintroduction of an aid measure originally approved by the Commission on 1 July 2020 (SA.57691), which expired on 31 December 2021. Under the programme, the support will take the form of direct grants. The measure is addressed to all interested airlines operating routes to and from Cyprus. The amount of the grant will depend on the occupancy rate of the aircraft (i.e. the number of persons on board divided by the capacity of the aircraft expressed in number of passengers), starting from an occupancy rate of 41% and reaching up to 70%, and will be paid per passenger transported. The aim of the programme is to support airlines in an integrated and impartial manner, in order to restore air services to and from Cyprus and thus achieve the recovery of air connectivity and tourism.
The Commission found that the Cypriot programme is in line with the conditions set out in the Temporary Framework. In particular, the aid (i) will not exceed €2.3 million. (ii) it will be granted by 30 June 2022 at the latest. The Commission concluded that the measure is necessary, appropriate and proportionate to remedy a serious disturbance in the economy of a Member State, in accordance 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 measures taken by the Commission to address the economic impact of the coronavirus outbreak is available here. The non-confidential version of the decision will be published under the case number SA.101311 in the State aid register on the Commission's competition website once any confidentiality issues have been resolved.
