Cyprus addresses potential impact of new european aviation aid regulations

The European Commission is currently revising its 2014 guidelines regarding state aid for aviation, aiming to adapt rules to post-pandemic shifts and the green transition. While the European Commission suggests stricter limitations on state support for airports and new routes, reports indicate this could threaten the connectivity of island nations like Cyprus. The Cypriot Ministry of Transport, Communications and Works maintains that current incentives offered in partnership with airport operators are market-based rather than state aid and therefore remain secure. Despite concerns over potential economic and geographical isolation, the government of Cyprus is actively participating in the consultation process. Nicosia has submitted six specific proposals to Brussels, including the recognition of airports as territorial cohesion infrastructure and the extension of adjustment periods until 2035. Additionally, the government advocates for a fair 'passengers per inhabitant' criterion to be included in the new framework. Larnaca and Paphos airports reached a record of 10.7 million passengers in 2025, highlighting the critical nature of air travel for the country. The consultation phase for the new guidelines concluded on June 11.