Cyprus’s air connectivity is safeguarded despite the revision of European rules on state aid, notes the Ministry of Transport, Communications, and Public Works in a statement issued on Sunday.

In light of the ongoing public debate regarding the revision of the European Guidelines on State Aid in the Air Transport Sector, the Ministry of Transport, Communications, and Works clarifies that the Republic of Cyprus is actively participating in the process and has submitted a well-documented position, including six specific recommendations. “Cyprus’s air connectivity remains strong, and the Republic of Cyprus is working in a timely and well-documented manner so that the new European framework continues to support the needs of an island Member State such as Cyprus,” the Ministry states.

It is clarified that the incentives provided by the Republic of Cyprus, in cooperation with the airport management company, to airlines “do not constitute state aid: they are provided on market terms and generate additional revenue for both the state and the airport operator, constituting an investment that a private investor would also make under the same conditions.”

Therefore, the Ministry notes, “these incentives, which have supported the steady growth and improvement of the country’s connectivity, are not affected by the revision of the European framework for state aid, and there is no question of any impact on the existing mechanisms that have contributed in recent years to strengthening the country’sconnectivity.”

The revision of the existing European framework for state aid in air transport, the Ministry notes, is part of the European Commission’s effort to update the relevant rules, taking into account developments in the aviation sector in recent years, including new environmental requirements and changes in the European aviation market.

The consultation concerns the rules under which member states may, under certain conditions, support airports and new air routes, he states, noting that, for Cyprus, “the issue is particularly important, as air connectivity is a key means of connecting the country with the rest of Europe.”

“Cyprus does not view the proposed European reform as a mere technocratic issue,” he adds, noting that for an island member state with no road or rail connection to the rest of Europe, air connectivity is essential infrastructure for citizens, tourism, and the economy.

“The Republic of Cyprus’s goal is for the new European framework to take into account the real needs of island states and to ensure that the necessary tools to support connectivity remain available,”, he states.

Specifically, he notes, Cyprus’s six proposals mean, in practice, that the country’s airports will be treated as territorial cohesion infrastructure. “The European Commission explicitly recognizes Cyprus as a ‘remote region.’ The government is asking for this to be stated even more clearly—that our airports are infrastructure for national cohesion, just like highways in other countries,” he said. “The benefit: greater assurance that the airports in Larnaca and Paphos will be eligible for state support when there is a genuine need,” it adds.

In addition, Cyprus proposes that incentives for new routes to island nations be maintained in a targeted manner—for winter schedules and new tourism markets, it states, noting that the benefits will include more off-season flights, diversification of tourist flows, and less dependence on specific markets.

The third proposal concerns “fair treatment given the size of our country,” the Ministry notes, stating that an airport handling nine million passengers in a country of 900,000 residents is not the same as an airport in a major European city, and that the government is requestingthat the criterion “passengers per resident” be added.

Cyprus is also requesting an extension of the transitional aid period until 2035 for island states, so that airports can adapt to the new green requirements (sustainable fuels, electrification), and an “explicit exemption” from artificial “proximity” to airports in other countries. It should be noted that the new rules examine, among other things, the extent to which neighboring airports compete with one another. “For Cyprus, which has no road or rail connection to another member state, this makes no sense,” it is noted, and it is stated that the benefit will be less bureaucracy and faster evaluation of support requests at the European level.

The government is also calling for easier access to ticket subsidies for students, workers, and professionals traveling to and from Europe.

“Air connectivity is not a luxury for Cyprus. It is the functional equivalent of the road and rail networks that connect other member states to the rest of Europe,” states the relevant Ministry, adding that the Republic of Cyprus submitted, in a timely manner and within the public consultation deadline, set for June 11, 2026, a well-documented position containing clear and practical recommendations.

The goal is a modern, fair, and proportionate European framework that protects the country’s connectivity and recognizes the real needs of island states, the statement concludes.

Source: KYPE