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It is with great pleasure that we are meeting today to learn about the new flight programme of the Cypriot airline TUS, which with five A320 aircraft will undoubtedly upgrade our country's position on the global map of air connectivity.
After almost two years, TUS reopened its horizons last summer and has since become a major player in the air connectivity market, contributing to the development of the tourism industry and connecting our country with major and important destinations in Europe and elsewhere.
This progress of TUS becomes even more significant if we consider that the company took its first steps after its reactivation in the midst of the crisis caused by the coronavirus pandemic. The conditions in which TUS had to operate were extremely difficult and changing.
Ladies and Gentlemen,
The consequences of the coronavirus pandemic of the last two years have highlighted the urgent need to seek new ways of approaching major challenges in all areas of the economy and society. As an island state, Cyprus depends almost exclusively on air transport for its connectivity. Inevitably, Cyprus too was caught in the maelstrom of the health crisis and is experiencing its effects, while attempting a smooth social and economic reboot.
The country has had to take drastic measures since 2020 in an attempt to deal with the severe impact of the restrictive measures in the air transport sector and by extension tourism, which together contribute more than 20% of our country's GDP.
The country has had to take drastic measures since 2020, in an attempt to deal with the severe effects caused by the restrictive measures in the air transport sector and by extension tourism, which together contribute more than 20% of our country's GDP.
After 2019, marked as a milestone year for passenger traffic and our air connectivity, as we recorded record passenger traffic with 11.3 million passengers, in 2020 we experienced the blow of the pandemic with the closure of air transport for about 3.5 months, which resulted in a reduction of passengers to 2.3 million.
In July 2020, a concerted collective effort to recover aviation was launched with a series of initiatives and actions, as well as collaboration between the Ministry of Transport, Communications and Works with the Deputy Ministry of Tourism and the Airport Operator, Hermes Airports, which resulted in a steady recovery of aviation with passenger traffic in 2021 at our two airports reaching 5.1 million passengers.
In 2021, our country ranked 4th in Europe with the best performance in terms of passenger traffic recovery and even with an increased number of destinations compared to 2019 (from 150 to 158 in 40 countries).
The most substantial action was the development of an Action Plan for the resumption of flights which was implemented in June 2020. This gave us a competitive advantage over other countries and formed the basis for the recovery of our country's air connectivity.
The Action Plan was also supported by a temporary Incentive Plan granted to Airlines to address the impact of pandemic COVID-19. The Plan has recently been extended with approval from the European Commission, valid until the end of June 2022 and with a budget of €6.13 million. We expect 60 airlines, offering flights connecting our country with the rest of the world, to take advantage of the Plan in the first half of 2022.
At the same time, we have proceeded with the liberalisation of airport ground services, a decision that will significantly improve the competitiveness of our airports, as it is expected that the costs that airlines have in this sector will be significantly reduced due to the free competition that will be created.
In addition, the Ministry of Transport, Communications and Works has taken an initiative at European level on the issue of air connectivity. Having identified that the coronavirus pandemic has taken a toll on European Union states, particularly on the regional and island members of the Union, Cyprus has promoted the Declaration on Air Connectivity, which has as its main objective the support of the aviation sector. We were pleased to see our initiative being warmly welcomed by our 13 partners in the European Union and we are pleased to announce that on 7 and 8 April we will host in Cyprus a Conference with the participation of 13 European Transport Ministers, which will culminate in the signing of the Declaration.
Dear Friends,
The Government's aim is to create the right environment to improve the connectivity of our country, while at the same time ensuring that we provide the means to strengthen airlines and facilitate the establishment of new ones.
The war situation that has been raging in Ukraine in recent days is affecting two important tourist markets for Cyprus, Russia and Ukraine. It is estimated that if the situation in Ukraine remains unstable and the sanctions imposed against Russia continue, Cyprus will see an estimated 15% decrease in total passenger traffic in 2022, which translates into approximately 1.6 million passengers (arrivals and departures).
At the Ministry of Transport, in cooperation with the Deputy Ministry of Tourism and the Airport Manager, we are working on various scenarios to achieve the improvement of the country's air connectivity and to absorb to the extent possible the losses from the Russian market.
I assure you that we are doing everything possible to make up for the lost seats with alternative destinations and the start is made today with the presentation of the new TUS flight schedule. Relevant information will be subsequently provided by the TUS General Manager on the destinations included in the airline's flight schedule.
Dear Friends,
Despite the changing environment and the difficult conditions prevailing globally, our efforts to keep the aviation sector on a positive trajectory are ongoing.
Our companion in the implementation of our strategy has been our airline TUS for the last year since its reactivation. Taking into account all comparative advantages, and encouraging air connectivity to new destinations, TUS Airways has recently been granted, among others, the commercial rights to TUS Airways for an access licence for the Larnaca-Pekino-Larnaca route with two frequencies per week. I am confident that very soon the route will be implemented with multiple benefits for the travelling public as well as for tourism and the economy of our country.
Dear Mr Weinstein, I would like to assure you of the Government's willingness to support your plans to the maximum extent possible, recognizing that your own achievements in the aviation sector translate into success for Cyprus at large.
I wish you good and safe flights and every success in the goals you have set for this year.
(MKY)
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