Cypriot unions oppose airline closure

Unions in Cyprus have protested against the closure of Cyprus Airways which ceased operations on 9 January with the loss of 560 jobs.

The airline was closed after the European Commission concluded that the financial support that the Cypriot government had provided to the airline — a €34 million (£27 million) loan and a €31 million (£25 million) capital increase — amounted to illegal state aid and was distorting competition.

The Commission called for the support to be repaid and, as the company was unable to do so, the government (which owns 93% of the company), decided it should be put into voluntary liquidation.