Cyprus’ air connectivity will not be affected by the revision of European state aid rules for aviation, the Transport Ministry said on Sunday, stressing that the country’s existing airline incentive schemes operate on market terms and do not constitute state aid. 

The ministry said the Republic of Cyprus has already submitted a documented position to the European Commission as part of the ongoing public consultation on the revision of the European Guidelines on State Aid to Aviation, putting forward six specific recommendations aimed at protecting the connectivity needs of island member states. 

“Cyprus’ air connectivity remains strong,” the ministry said, adding that the government is acting in a timely and documented manner to ensure that the new European framework continues to reflect the needs of an island state with no road or rail links to the rest of Europe. 

It clarified that the incentives provided by Cyprus, in cooperation with the airport operator, to airlines are not state aid, as they are granted on market terms, generate additional revenue for both the state and the operator, and represent an investment that a private investor would also make under the same conditions. 

As a result, the ministry said the revision of the European framework does not raise any issue regarding the existing mechanisms that have supported the steady improvement of Cyprus’ air connectivity in recent years. 

The review forms part of the European Commission’s effort to update aviation state aid rules in light of changes in the sector, including new environmental requirements and developments in the European aviation market. The consultation concerns the conditions under which member states may support airports and new air routes. 

For Cyprus, however, the ministry said the matter is not simply technical. As an island member state, air connectivity is a core national infrastructure issue, supporting citizens, tourism, business activity and the wider economy. 

The government’s first recommendation is for Cyprus’ airports to be treated more clearly as territorial cohesion infrastructure. The ministry said the European Commission already recognises Cyprus as a remote area, but Nicosia wants this to be reflected more explicitly in the new rules, so that Larnaca and Paphos airports can receive state support when there is a genuine need. 

Cyprus is also calling for targeted incentives for new routes to island states to be maintained, particularly for winter routes and connections with new tourism markets. According to the ministry, this would help increase off-season flights, diversify tourist flows and reduce dependence on specific markets. 

A third recommendation concerns the fair treatment of smaller member states. The ministry said an airport handling nine million passengers in a country of 900,000 people should not be treated in the same way as an airport in a large European city. Cyprus has therefore proposed the inclusion of a passengers-per-inhabitant criterion. 

In addition, the government is seeking an extension of the transitional aid period for island states until 2035, allowing airports more time to adapt to new green requirements, including sustainable aviation fuels and electrification. 

Cyprus is also asking for an explicit exemption from artificial “proximity” assessments involving airports in other countries. The ministry said rules examining whether neighbouring airports compete with each other make little sense for Cyprus, which has no road or rail connection to another member state. Such an exemption, it said, would reduce bureaucracy and allow faster assessment of support requests at European level. 

The sixth recommendation concerns the facilitation of ticket subsidies for students, workers and professionals travelling between Cyprus and the rest of Europe. 

The ministry said that “air links are not a luxury for Cyprus, but the functional equivalent of the road and rail networks that connect other member states with Europe.” 

It added that “Cyprus submitted its position within the public consultation deadline of June 11, 2026, with the aim of securing a modern, fair and proportionate European framework that protects the country’s connectivity and recognises the real needs of island states.”