Cypriot Minister of Finance, Harris Georgiades and Minister of Communications, Marios Demetriades said at a joint press conference that the licence of the government-owned company was revoked and its flying programme terminated with immediate effect, according to a Xinhua report.

The Ministers also announced alternative arrangements for Cyprus Airways passengers following the termination of the ailing carrier’s operations.

“These alternative arrangements... are possible to include the use of chartered airplanes, the transportation of passengers with another airline to his or her destination... or any combination of the above,” the Ministers said in a statement.

The decision to immediately shut down the Cypriot national air carrier, which was established in 1947, came after the European Commission, the executive body of the European Union (E.U.), announced that Cyprus Airways would have to pay back about 100 million euros (about $118 million) in state aid it has received since 2007.

“Cyprus Airways needs to pay back all incompatible aid received,” E.U. Competition Commissioner, Margrethe Vestager said.

The commissioner ruled that the state aid gave the company an undue advantage over its competitors in breach of E.U. rules.

The commission also found that Cyprus Airways “had no realistic perspective of becoming viable without continued state subsidies” and that injecting more money into the company would not achieve a turn-around”.