Cyprus Airways reportedly ponders alternative rescue plan

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Cyprus Airways is reportedly considering an alternative plan to re-launch as a new carrier under its Cyprair Tours brand if the European Commission rules it took illegal state aid from the Cypriot government.

The airline is contemplating shifting operations and its staff over to its tour operator, which would then apply for a an air operator certificate to operate as a standalone airline if the Commission decision goes against it, Tony Antoniou, the airline’s chairman os quoted as saying by the Cyprus Mail.

The airline would then obtain Cyprus Airways slots at Larnaca airport and built up from scratch, Antoniou says.

The airline is the subject of an investigation by the European competition watchdog which is probing claims €31.3 million ($40.7 million) pumped into the airline by the Cypriot government in 2011 consisted state aid.