Government says: Cyprus Airways closure ‘unavoidable’

NICOSIA: Cyprus, defended on Saturday the decision to halt flights by its national carrier, calling the closure of debt-laden Cyprus Airways unavoidable, as pilots vowed action against the government. Government spokesman Nicos Christodoulides told state radio that authorities had tried to rescue the stricken carrier, but that its problems were long standing and irreversible. The 68-year-old Cyprus Airways made its last flight on Friday night from Athens to its home base of Larnaca on the island’s south coast after EU regulators ordered Cyprus to recover illegal state aid granted to the airline. Communications Minister Marios Demetriades had warned the airline could not survive if the EU decided Cyprus broke the rules by giving it a €31-million ($37 million) capital increase and a €34-million rescue loan.

Published in The Express Tribune, January 11^th, 2015.

Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.