IACA expressed dismay at a further 9% increase in airport charges at Larnaca and Paphos airports in Cyprus for 2009, 4% above the average yearly rate of inflation for Cyprus. This increase comes on top of an outrageous increase of 77% in charges last year by Hermes, the management company for the two airports. Hermes announced the new increases in a letter to all airlines last week.

IACA, which represents 39 airlines serving the leisure industry and 30% of the airline market share in Cyprus (50% at Paphos airport), has repeatedly challenged the recent increases in airport charges warning that they are putting extreme pressure on leisure airlines serving the country and make Cyprus uncompetitive when compared with other Mediterranean leisure-based airports. Today Cyprus is already up to 150% more expensive than other similar airports in the Mediterranean region and this additional increase will make this percentage even greater.

At a time when inbound tourism, especially from the UK, is declining, as well the effect of the strong Euro and global credit crunch on the travelling public, IACA is surprised that Cypriot authorities are not taking more steps to attract more visitors to the country.

Luc Geens, Manager Ground Operations, IACA, commented:

“These further increases send a wrong signal to airlines and their passengers that Cyprus is serious about encouraging tourism to Cyprus. Our airlines need more incentives to come to Cyprus not further charges. There is no justification for an increase in airport charges at a time when tourism is suffering and ground handling services at Larnaca and Paphos airports are more chaotic than ever.”

“I’m disappointed that directly after our meeting with Minister Nicolaides and Minister Paschalides in early July, our members receive a further above-inflation increase in airport charges. I call upon both Ministers and Hermes to reconsider the 2009 increases urgently”.