articles | 13 March 2015

New package of incentives for airlines

A new incentives package to entice more airlines to Cyprus was signed recently between airports’ operator Hermes and the Ministry of Communications, Works and Transport.

The scheme covers both airports at Larnaca and Paphos and is being offered to all airlines without discrimination, a joint statement said.

“The six incentive schemes aim at further strengthening the air connectivity of Cyprus and boosting the country’s tourism industry,” it added.

The package of will include schemes for the introduction of multiple new routes on a three-year agreement, development of new (single) routes, development of winter traffic, discounts on landing fees at Cypriot airports, development through a Growth Bonus Plan on a net traffic growth for existing routes, and marketing support for the promotion of Cyprus by the airlines.

The aim is to increase connectivity and boost passenger numbers, especially during the slow winter period.

The statement said it was hoped the incentives would help increase tourist traffic from existing markets, develop new markets and allocate additional capacity on flights to and from Cyprus.

Cyprus this year saw the demise of its own national carrier, shut down on January after the European Commission ordered it to pay back some €66m in illegal state aid.

Tourism Minister Giorgos Lakkotrypis said at a recent hoteliers conference that the gap has been filled by other airlines. He said the government had also succeeded in promoting new air routes to and from Cyprus from Barcelona, Rome, Berlin, Munich, Hamburg, Vienna and other cities.

Low cost Ryanair, which was the first to benefit from government incentives when it set up a hub in Cyprus in 2012 but pulled out of Larnaca after one season when refused even lower landing charges, said recently prices were still “astronomically high” at both of Cyprus airports, which was deterring airlines.

Ryanair’s Chief Commercial Officer, David O’Brien, during a news conference in Paphos said: “Cyprus is a good example of what not to do. Excellently run airports which are operationally excellent, they look good, but they are too expensive.”

More information and details about the six incentive schemes of the international airports of Cyprus will be available on Thursday on the Cyprus airports’ website www.hermesairports.com the operator said.

Source: Cyprus Mail

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