Charter airline operators face ban from Cyprus airports

Nine charter airline operators, members of the independent aviation companies (IACA), face a ban from the Cyprus airports at Larnaca and Paphos, as they refuse to pay their dues to the new venture, Hermes Airports Ltd.

Most of the 100 airlines flying to and from Cyprus paid the higher dues earlier this year after the venture operator hiked all airport fees, saying it had an obligation to pay, in turn, the government of Cyprus.

One of the companies that faced a potential problem was the government-owned Eurocypria, that owed about 610,000 euros, while all dues owed by the IACA members that carried some 1,5 mln passengers in 2006, is estimated at EUR 2,5 mln.

The former subsidiary of the troubled national carrier Cyprus Airways is still in negotiations with Hermes Airports but will be allowed to fly in and out of both airports.

Hermes Airports had earlier set a deadline of 1800 local time Friday to settle their dues or else they would not be able to use the airport facilities, which came to add to the existing chaos created by the threat of the Cyprus Airways pilots strike on Saturday, while increased passenger traffic and car park problems at Larnaca airport causes endless queues and jams leading to the main terminal building.

IACA president Roland Taylor said earlier Friday that Hermes Airports had hiked all fees but provided below-standard services. Larnaca and Paphos, he said, were 200% more expensive than Morocco, and double the costs of airports in Spain, Turkey and Greece.

Airline companies hesitantly paid up the new higher fees, causing them to cut down on additional flights in summer as the new hike makes Cyprus less competitive.

The government and the two airlines it controls had imposed the new fees on the airlines in an effort to fast-track the revenues receivable from the 25-year build- operate- transport (BOT) contract that will see new airport terminals and facilities at a cost of EUR 600 mln.