Cyprus: 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 said in a statement on Sunday.
According to Cyprus News Agency, discussions are currently underway on revising the European Commission's State Aid Aviation Guidelines. The Ministry clarified that the Republic of Cyprus is actively participating in the process and has submitted a well-substantiated position paper containing six specific proposals.
The Ministry stated that Cyprus' air connectivity remains strong and that the Republic is working proactively, using evidence to ensure that the new European framework continues to support the needs of an island Member State such as Cyprus. It emphasized that the incentives provided by Cyprus, in cooperation with the operator of the island's airports, to airlines do not constitute state aid. These 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 assured that 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. There is no risk to the existing mechanisms that have helped strengthen Cyprus' air links in recent years.
The Ministry highlighted that the revision of the current EU state aid framework for aviation is part of the European Commission's efforts to update the relevant rules in response to developments in the aviation sector over recent years, including new environmental requirements and changes in the European aviation market.
The consultation addresses the conditions under which Member States may, in certain circumstances, provide support to airports and new air routes. The Ministry noted that this issue is particularly important for Cyprus, as air connectivity is the country's principal means of linking with the rest of Europe. 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.
Cyprus has submitted six proposals, the first of which seeks to ensure that the country's airports are recognized as infrastructure serving territorial cohesion. While the European Commission already recognizes Cyprus as a 'remote region', the Government is calling for this to be reflected more clearly by recognizing the island's airports as national cohesion infrastructure, comparable to motorways in other countries. The expected benefit, according to the Ministry, 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. These incentives would encourage more off-season flights, diversify tourist arrivals, and reduce dependence on a limited number of source markets.
The third proposal addresses '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 proposes the inclusion of a new criterion based on 'passengers per capita'.
Cyprus is 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 sustainable aviation fuels and electrification.
Additionally, the Government is requesting an 'explicit exemption' from the concept of 'proximity' to airports in other countries. Under the proposed rules, the Commission considers whether neighboring 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. Such an exemption would reduce bureaucracy and speed up the assessment of state aid applications at the European level.
The Government is also calling for greater flexibility regarding subsidizing air fares for students, employees, and professionals traveling to and from Europe.
The Ministry emphasized that air connectivity is not a luxury for Cyprus but the functional equivalent of the road and rail networks that connect other Member States with the rest of Europe.
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 recognizing the specific needs of island Member States.