Last Friday action by the European Commission has resulted in the Cyprus Airways having to immediately stop trading and operations.
The Commission has ruled that the Cypriot Government is in breach of competition regulations in that it has provided illegal subsidies to keep its national carrier in business. It has stated that the airline must immediately repay 65m euros plus interest that it should not have received.
Loss making Cyprus airlines is in no position to make the repayment and as a result its board of directors have decided to put the business into voluntary liquidation.
Passengers due to fly with the airline and having tickets are to be provided with alternative flights at the cost of the Cypriot Government who are announcing the procedures to be followed.
Click here to read the European Commissions ruling.
Click here to see the Press Release on Cyprus Airlines website.
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