New scheme to subsidize airlines conducting flights with low occupancy

Transport minister Yiannis Karousos on Wednesday announced a new scheme that will support airlines in view of stimulating passenger traffic.

Speaking after the meeting of the Cabinet, Karousos said the scheme will provide incentives for airlines to conduct flights even with low occupancy rates.

The scheme will see the government subsidizing airline companies based on their occupancy rate index, with sums to be pumped out for flights conducted with occupancy rates between 40% and 70%.

Karousos said the scheme will run for six months, and is budgeted at €6.3 million.

“The aim is the restoration of direct connectivity and the support of aviation," Karousos said.

The minister went on to say that through the scheme, passenger traffic is expected to reach 37,000 in June, 196,000 in July, 460,000 in August, 643,000 in September, 693,000 in October, 388,000 in November, and 334,000 in December.

Karousos highlighted the importance of the incentives provided through the scheme, which promotes the direct connectivity of Cyprus with countries abroad, and motivates airlines to conduct flights to Cyprus for the next six months.

Cyprus reopened its airports on Tuesday after almost three months of lockdown, hoping its record in dealing with the coronavirus pandemic and a pledge of free medical treatment for any Covid-19 cases will lure tourists back to its beaches.

Heavily reliant on tourism, Cyprus announced a lockdown soon after its first cases on March 9. By Monday, it had recorded 970 cases and just 18 deaths, and its daily count of new infections was down to a handful.