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(I) Air transport is the main mode of transport to and from Cyprus carrying almost the entire passenger traffic. In 2011, apart from Cyprus Airways, sixty-nine (69) foreign airlines operated scheduled flights to and from Cyprus. Charter flights were operated by twelve (12) foreign airlines. Unfortunately due to intense competition, EUROCYPRIA Airlines, the second airline of the country, suspended its operations on 05/11/2010.
Peak air traffic occurs during the summer periods (April - October). The table below shows the passenger and air traffic to and from Cyprus for the last five (5) years (2007 - 2011) at each airport. Transport of cargo through the airports is relatively small and is limited to approximately 38000 metric tons per year mainly at Larnaka airport.
YEAR | PASSENGERS | AIR TRAFFIC |
 | LARNAKA | PAFOS | LARNAKA | PAFOS |
2007
2008
2009
2010
2011 | 5.387.724
5.482.567
5.258.716
5.475.905
5.636.426 | 1.819.182
1.764.660
1.640.562
1.646.937
1.786.947 | 47.755
50.483
46.416
49.022
50.329 | 14.301
12.563
12.676
12.802
11.951 |
It is expected that in the coming years passenger traffic will show an average annual increase of 2% - 3%. Traffic growth depends on competition in tourism, the international economy as well as other external factors such as the political stability in the region.
It is noteworthy that in 2011, 77% of air traffic at Larnaka airport was from European Union countries, while this percentage rose to 85% for Pafos airport. The percentage of charter flights is at 25% for Larnaka airport and 49% for Pafos airport (year 2011). United Kingdom is the primary market for Cyprus in passenger traffic with a rate of 37.26% and is followed by the markets of Greece at 15.71%, Russia at 9.45% and Germany at 5.34%.
(II) Air transport with third countries is regulated by the provisions of Bilateral Air Services Agreements that have been signed by the Republic of Cyprus from 1960 until today [there are currently fifty-one (51) signed Bilateral Air Services Agreements], while with member states of the European Union, since 1/5/2004 the Acquis Communautaire applies in air transport and in particular the provisions of Regulation 1008/2008. This regulation has replaced the Third Liberalization Package in Air Transport (2407/92 - Licensing of air carriers, 2408/92 - Access for Community carriers to intra-Community air routes and 2409/92 - Liberalization of airfares).
Regulation 1008/2008 updates and adds new provisions in terms of informing passengers of the final value of the air fare which will now include all taxes and charges.
(III) The legal framework for air transport in Cyprus is governed by EU Legislation on air transport, International Conventions and Agreements on air transport and the Civil Aviation Law (213(I)/2002) with its amendments. The Department of Civil Aviation is the body responsible for implementing the above mentioned framework. More information can be found on the website of the European Union online at: http://ec.europa.eu/transport/air/index_en.htm
(IV) The Department of Civil Aviation approves all EU flights without delay in accordance with the acquis. However, for flights carried out with third countries the status of Bilateral Agreements applies, and prior to approval, the necessary research is conducted in order to ensure that the operation of such flights is consistent with the provisions of Bilateral Agreements.
(V) The further development of air transport in connection with the strategic position of Cyprus in the Southeastern Mediterranean as a link between Europe and the Middle East requires the development of infrastructure at the airports of the Republic. To this end, the State has assigned the development and management of the two airports of the Republic to a private investor using the BOT method (Built, Operate and Transfer) for a period of 25 years. The private investor assumed management of the airports of Larnaca and Pafos in May 2006. The new terminals, can accommodate in the first phase, 7,5 million passengers in Larnaca and 2.7 million passengers in Pafos.
(VI) Air Transport Licensing Authority – (ATLA).
The licensing of air carriers falls under the responsibility of the Air Transport Licensing Authority (ATLA), chaired by the Permanent Secretary of the Ministry of Communications and Works (Judicial Instrument 620/2002). An air carrier is licensed after securing an Air Operator Certificate (AOC) from the Department of Civil Aviation.
Similarly, the Licensing Authority for Air Transport grants commercial rights to foreign airlines το perform flights to and from Cyprus. In the case of third countries which have accepted the right of other Community air carriers to operate routes from Cyprus, a recommendation is made by an evaluation committee to the Minister of Communications and Works for granting permission to access such commercial rights.
VII) Allocation of Scarce Traffic Rights
On November 7, 2008, the Decree (Statutory Instrument 406/2008) of the Minister of Communications and Works under Article 260 of the Civil Aviation Law (213 (I) / 2002 ) was published in the Official Gazette of the Republic (no. 4082) for the purposes of implementation of Articles 5 and 6 of Regulation EC 847/2004.
The Decision (Statutory Instrument Acts 406/2008) which was published in the official journal of the EU (10.3.2009 C56/37), aims to determine the procedure and criteria for granting access to Community Air Carriers established in the Republic of Cyprus to perform services, under the relevant Bilateral Air Services Agreements, between Cypriot airports and airports of third countries.
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