Eurofound's EU PolicyWatch collates information on the responses of government and social partners to the COVID-19 crisis, the war in Ukraine, rising inflation, as well as gathering examples of company practices aimed at mitigating the social and economic impacts.
Factsheet for measure CY-2020-28/897 – Updated – measures in Cyprus
|Country||Cyprus , applies nationwide|
|Time period||Temporary, 10 July 2020 – 30 June 2022|
|Type||Other initiatives or policies|
Promoting the economic, labour market and social recovery
– Measures to support a gradual relaunch of work
|Author||Loucas Antoniou (INEK) and Eurofound|
|Measure added||01 July 2020 (updated 19 January 2022)|
The new incentives scheme has been approved by the Cabinet and announced by the Minister of Transport, Communications and Works, Mr. Yiannis Karousos, and aims to address the consequences emerged with the closing of airports in different sectors of the economy, particularly in tourism, and improve air connectivity of Cyprus with abroad.
The Scheme targets all airline companies aiming to reestablishing the air connection of Cyprus with abroad, revitalizing air passenger traffic and reducing the risk of airline companies, which plan to operate flights in the coming months.
The compensation will be performed on the aircraft occupancy indicator. Based on the indicator, an air route will be eligible to participate in the Scheme only if the airline company estimates that it is in a position to cover at least 40% of the aircraft’s capacity.
The incentive will be paid to the airline companies for a capacity of 41% to 70%, assuming that if the airline company exceeds 70% of aircraft capacity it will have attained normal market conditions. It is estimated that passengers’ traffic will reach 37,000 passengers in June, 196,000 in July, 460,000 in August, 634,000 in September, 693,000 in October, 388,000 in November and 334,000 passengers in December.
The following updates to this measure have been made after it came into effect.
|21 December 2021||
The suggestion of the Minister of Transport, Communications and Works for the extension of the incentives schemes for another six months (to 30 June 2022) has been approved by the Cabinet on 21 December 2021.
The budget of the Incentives Scheme, which is approved by the State Air Commissioner, amounts to €6.3 million. The Scheme will be in force for the next six months; it is addressed to all the airline companies and it is expected that more than 40 companies will express interest to use and participate in the scheme.
|Does not apply to workers||
Sector specific set of companies
||Does not apply to citizens|
Social partners' role in designing the measure and form of involvement:
|Trade unions||Employers' organisations|
|Role||No involvement||No involvement|
|Form||Not applicable||Not applicable|
Social partners' role in the implementation, monitoring and assessment phase:
Social partners did not participate in the design of the Scheme and are not expected to participate in the implementation and monitoring processes. The Scheme has been designed by the Ministry of Transport, Communication and Works and approved by the Council of Ministers.
Social partners as well as the political parties see the scheme very positively. They believe that the measure can positively contribute to the restart of the economy, the relaunching of the tourist industry and reduce the negative impact of the pandemic in the economy and in the tourist industry, in particular.
This case is sector-specific (only private sector)
|Economic area||Sector (NACE level 2)|
|H - Transportation And Storage||H51 Air transport|
This case is not occupation-specific.
Eurofound (2020), Incentives scheme for airline companies, measure CY-2020-28/897 (measures in Cyprus), EU PolicyWatch, Dublin, https://static.eurofound.europa.eu/covid19db/cases/CY-2020-28_897.html
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Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process.