According to the Greek Cypriot newspaper ‘Phileleftheros’, estimates that the increasing number of people flying out of Ercan is costing South Cyprus 12 million Euros every year. The paper estimates that this number will increase in 2013.
The newspaper claims that the contract between the Greek government and Hermes the airport operator has clauses to cover this eventuality. The clauses have a formula that reduces the contribution made by Hermes to the government as “the illegal Ercan airport becomes more competitive.”
It is claimed that the contract signed in 2006 states that if the number of Ercan passengers reaches one million, then Hermes can reduce its contribution by around 30 Euro per passenger. This will result in a reduction of around 12 million Euros, the newspaper calculates.
This contract is now being renegotiated.