Pressure Mounts on Cyprus to Establish State Air Navigation Firm

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Cyprus urged to complete long-delayed aviation restructuring plan.

The creation of a state-owned Cyprus Air Navigation Services company (CyANS) is a strategic necessity for Cyprus and the wider European aviation network, according to a letter from the European air traffic controllers’ union ATCEUC to President Nikos Christodoulides and the Ministers of Transport and Finance.

In the letter, sent on Friday, ATCEUC warns that delays in establishing the new entity carry “costs and risks” and urges the government to proceed with its long-planned reform without further postponement.

Improved safety

The union highlights that Cyprus has made “notable progress” in preparing CyANS, which has been under development since 2013 with EUROCONTROL support. It argues that the new structure would improve safety, efficiency and regulatory compliance, while strengthening Cyprus’ role in the European aviation system.

According to ATCEUC, Cyprus’ airspace has historically been a significant source of air traffic flow management delays in Europe, with nearly 500,000 minutes of delay recorded in 2019, costing airlines over €50 million annually.

The union says forecasts indicate air traffic in Cyprus’ Nicosia FIR will surpass pre-pandemic levels by 2027–2030, warning that without reform the country risks becoming a major bottleneck once again.

Consequences of delays

The proposed CyANS framework would increase staffing levels, modernise systems and aim to eliminate delays by 2029, potentially saving airlines around €55 million annually.

ATCEUC also stressed that Cyprus remains one of only a few EU states yet to fully separate regulatory and service provision functions under the Single European Sky framework.

The union further notes that CyANS would not create a fiscal burden, estimating net positive public revenues of €12.5–€26 million per year, and could generate up to 360 high-skilled jobs.

It calls for the company to become operational by 2027 and says it stands ready to provide technical support for the transition.

The Cyprus Air Traffic Controllers Association (PASΕΕΚ) also warned separately that continued delays may raise safety and operational concerns, urging swift implementation of the reform.

 

CNA