Cypriot Govt to compensate Cyprus Airways for flight ban

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Cyprus Airways has secured a €20 million ($27.2 million) payment from the Cypriot Government to compensate the carrier for an ongoing ban on its flights through Turkish airspace.

A Cyprus Airways spokesman says the payment covers the 2004-2010 period of the ban, but adds: "There is a strong possibility the compensation will continue as long as the Turkish ban exists."

Cyprus Airways is undergoing a restructuring programme that will lead to the loss of up to 140 jobs in the short term.

The carrier has warned of heavy full-year losses for 2010. It will report its financial results next month.