Cyprus’ air connectivity remains secure despite the ongoing revision of the European Union’s state aid rules for aviation, the Ministry of Transport, Communications and Works has said in a statement.
In light of discussions currently under way on the revision of the European Commission's State Aid Aviation Guidelines, the Ministry, in its 5 July statement, clarified that the Republic of Cyprus is actively participating in the process and has submitted “a well-substantiated” position paper containing six specific proposals.
“Cyprus’ air connectivity remains strong and the Republic of Cyprus is working proactively and on the basis of evidence to ensure that the new European framework continues to support the needs of an island Member State such as Cyprus,” the Ministry said.
It stressed that the incentives provided by the Republic of Cyprus, in cooperation with the operator of the island’s airports, to airlines, “do not constitute state aid.” It said the incentives are granted on market terms and generate additional revenue for both the State and the airport operator, representing an investment that a private investor would also make under the same conditions.
As a result, the Ministry said, these incentives, “which have supported the steady growth and improvement of the country's air connectivity, will not be affected by the revision of the European state aid framework, and there is no risk to the existing mechanisms that have helped strengthen Cyprus’ air links in recent years.”
Updating the relevant rules in light of developments
According to the Ministry, the revision of the current EU state aid framework for aviation forms part of the European Commission’s efforts to update the relevant rules in light of developments in the aviation sector over recent years, including new environmental requirements and changes in the European aviation market.
The consultation concerns the conditions under which Member States may, in certain circumstances, provide support to airports and new air routes. The Ministry noted that the issue is particularly important for Cyprus, noting that air connectivity is the country’s principal means of linking with the rest of Europe and that the Republic of Cyprus seeks to ensure that the new European framework reflects the genuine needs of island Member States and preserves the necessary tools for supporting connectivity.
The Ministry said Cyprus has submitted six proposals. The first seeks to ensure that the country’s airports are recognised as infrastructure serving territorial cohesion. While the European Commission already explicitly recognises Cyprus as a “remote region,” the Government is calling for this to be reflected even more clearly by recognising the island’s airports as national cohesion infrastructure, comparable to motorways in other countries, it said. The expected benefit, the Ministry said, would be greater certainty that Larnaca and Paphos airports could continue to receive state support where there is a genuine need.
Cyprus is also proposing that incentives for new air routes to island Member States should be maintained in a targeted manner, particularly for winter services and routes serving new tourism markets. According to the Ministry, this would encourage more off-season flights, diversify tourist arrivals and reduce dependence on a limited number of source markets.
The third proposal concerns what the Ministry described as “fair treatment for the size of our country.” It argues that an airport handling nine million passengers in a country of 900,000 people should not be assessed in the same way as an airport serving a major European city. The Government is therefore proposing the inclusion of a new criterion based on “passengers per capita.”
Seeking an extension of the transitional period
Cyprus is also seeking an extension of the transitional period for state aid until 2035 for island Member States, allowing airports more time to adapt to new environmental requirements, including the use of sustainable aviation fuels and electrification.
In addition, the Government is requesting “explicit exemption” from the concept of “proximity” to airports in other countries. Under the proposed rules, the Commission considers whether neighbouring airports compete with one another. The Ministry argues that this criterion is not relevant for Cyprus, which has no road or rail connection with any other Member State. It said such an exemption would reduce bureaucracy and speed up the assessment of state aid applications at European level.
The Government is also calling for greater flexibility as regards subsidising air fares for students, employees and professionals travelling 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 with the rest of Europe,” the Ministry said.
It added that the Republic of Cyprus submitted its evidence-based position, including clear and practical proposals, before the deadline for the European Commission's public consultation on 11 June 2026.
The aim, the Ministry concluded, is to establish a modern, fair and proportionate European framework that safeguards the country’s connectivity while recognising the specific needs of island Member States.
(Source: CNA)
