COMMISSION DECISION (EU) 2015/1073
of 9 January 2015
on the State aid SA.35888 (2013/C) (ex 2013/NN) SA.37220 (2014/C) (ex 2013/NN) SA.38225 (2014/C) (ex 2013/NN) implemented by Cyprus for Cyprus Airways (Public) Ltd
(notified under document C(2014) 9362)
(Only the English text is authentic)
(Text with EEA relevance)
1.
PROCEDURE
1.1. THE FIRST FORMAL INVESTIGATION PROCEDURE (SA.35888)
1.2. THE SECOND FORMAL INVESTIGATION PROCEDURE (SA.37220 AND SA.38225)
2.
THE CYPRIOT AIR TRANSPORT MARKET
3.
DESCRIPTION OF THE AID MEASURES
3.1. THE BENEFICIARY
3.2. DESCRIPTION OF THE MEASURES
3.2.1.
The first formal investigation procedure
3.2.1.2.
Measure 2: Rescue aid
3.2.1.3.
Measure 3: Ex gratia compensation
3.2.2.
The second formal investigation procedure
3.2.2.1.
Measure 4: Restructuring aid
3.2.2.2.
The 2013 Restructuring Plan
|
2013 |
2014 |
2015 |
2016 |
2017 |
Revenues |
168,1 |
108,2 |
109,6 |
111,7 |
113,1 |
EBIT |
(18,8) |
0,4 |
2,1 |
4,6 |
6,0 |
Net result before tax |
(18,9) |
0,4 |
2,1 |
4,6 |
6,0 |
EBIT % |
(24,9) % |
0,4 % |
1,9 % |
4,1 % |
5,3 % |
Capital reserves |
0,0 |
0,0 |
0,0 |
0,0 |
0,0 |
Total reserves |
(103,1) |
(102,7) |
(100,5) |
(96,0) |
(90,0) |
Total equity |
1,4 |
1,8 |
4,0 |
8,5 |
14,5 |
(in %) |
||||
|
2014 |
2015 |
2016 |
2017 |
ROE (Return On Equity) |
21,2 |
54,1 |
53,5 |
41,3 |
ROCE (Return On Capital Employed) |
1,2 |
6,1 |
11,4 |
13,0 |
Accumulated losses |
99,7 |
Other restructuring costs (aircraft lease settlements, redundancy entitlements etc.) |
10,4 |
Working capital |
37,4 |
Total restructuring costs |
147,4 |
|
Amount (in EUR million) |
Estimated realisation date |
Sale of two Airbus A319 aircraft |
22,1 |
Concluded in April 2012 |
Sale of evening LHR slot |
15 |
Under negotiation |
Sale of morning LHR slot |
10 |
Late 2014 |
Sale of spare parts |
3,5 |
EUR 2,0 million in 2013; EUR 1,1 million in 2014; EUR 0,4 million in 2015 |
Sale of property in Nicosia |
3,1 |
Concluded on 6 August 2013 |
Transfer of property in Athens to Provident Fund |
0,76 |
Transfer agreement concluded in August 2013 |
Total suggested own contribution |
54,46 |
|
3.2.2.3.
Measure 5: Training aid
3.3. GROUNDS FOR INITIATING THE FORMAL INVESTIGATION PROCEDURE
3.3.1.
The first formal investigation procedure
3.3.2.
The second formal investigation procedure
4.
COMMENTS ON THE FORMAL INVESTIGATION PROCEDURES
4.1. COMMENTS BY CYPRUS
|
Amount (in EUR million) |
Realisation — Evaluation |
Sale of two Airbus A319 aircraft |
22,1 |
Concluded in April 2012 |
Sale of evening LHR slot |
6,3 |
Transfer agreement concluded in March 2014 |
Sale of morning LHR slot |
22,8 |
Transfer agreement concluded in June 2014 |
Sale of spare parts |
3,5 |
No expert evaluation — estimated: EUR 2,0 million in 2013; EUR 1,1 million in 2014; EUR 0,4 million in 2015 Realised based on evidence provided by the Cypriot authorities: EUR 0,86 million |
Sale of property in Nicosia |
3,1 |
Concluded on 6 August 2013 |
Transfer of property in Athens to Provident Fund |
0,76 |
Backed by expert evaluation — Transfer agreement concluded in August 2013 |
Sale of one Airbus A320 |
2,5 |
No expert evaluation — sale pending |
Sale of two engines |
0,51 |
Concluded on 28 April 2014 |
Total suggested own contribution |
61,57 |
|
4.2. COMMENTS BY INTERESTED PARTIES
4.3. COMMENTS BY CYPRUS ON THE COMMENTS BY INTERESTED PARTIES
5.
ASSESSMENT
5.1. EXISTENCE OF STATE AID
5.1.1.
Measures 1, 2 and 4
Amount (in EUR million) |
Granting date |
3,0 |
12 September 2012 |
3,0 |
20 September 2012 |
5,0 |
26 September 2012 |
4,0 |
11 October 2012 |
16,33 |
28 December 2012 |
Total: 31,33 |
|
Amount (in EUR million) |
Granting date |
3,0 |
22 January 2013 |
5,0 |
29 January 2013 |
3,5 |
28 February 2013 |
10,0 |
2 May 2013 |
13,0 |
26 July 2013 |
Total: 34,5 |
|
5.1.2.
Measure 3
5.1.3.
Measure 5
5.1.4.
Conclusion on existence of State aid
5.2. UNLAWFUL AID
5.3. COMPATIBILITY OF THE AID
5.3.1.
Eligibility — Firm in difficulty
|
2008 |
2009 |
2010 |
2011 |
H1 2012(22) |
Turnover |
311,4 |
247,5 |
236,3 |
212,8 |
71,3 |
EBT |
2,1 |
- 3,2 |
- 2,9 |
- 23,8 |
- 34,2 |
Registered capital |
35,2 |
35,2 |
35,2 |
35,2 |
35,2 |
Own equity |
13,9 |
9,4 |
7,7 |
- 15,9 |
- 48,6 |
5.3.2.
Duration of the 2013 restructuring plan — Restoration of long term viability
5.3.3.
Avoidance of undue distortions of competition
5.3.4.
Aid limited to the minimum: real contribution, free of aid
5.3.5.
Special conditions in relation to companies in assisted areas
5.3.6.
‘One time, last time’ principle
5.3.7.
Conclusion
5.4. RECOVERY
6.
CONCLUSION
Article 1
Article 2
Article 3
Article 4
Article 5
Article 6
Article 7
ANNEX
INFORMATION ABOUT THE AMOUNTS OF AID RECEIVED, TO BE RECOVERED AND ALREADY RECOVERED (ALL AMOUNTS IN EUR)
Identity of the beneficiary — measure |
Total amount of aid received |
Total amount of aid to be recovered (Principal) |
Total amount already reimbursed |
|
Principal |
Recovery interest |
|||
Cyprus airways — State’s participation to the capital increase |
3 1 3 30 000(1) |
3 1 3 30 000 |
|
|
Cyprus airways — Rescue aid loan |
3 4 5 00 000(2) |
3 4 5 00 000 |
|
|
Cyprus airways — Training aid |
2 69 317,94(3) |
2 69 317,94 |
|
|
[Please adjust if any other aid was granted under Measure 4] |
|
|
|
|