Cyprus Airways must receive financial aid or it will be forced to shut down operations, several Cyprus based media have reported.

The Cyprus government is talking about three scenarios for the financially troubled carrier: Shut down the company immediately, continue operations during the summer season or continue operations further. However, Cyprus Airways chairman Stavros Stavrou told the Famagusta Gazette the last scenario would include 560 job cuts, payment cuts and fleet reduction from 11 Airbus A319/320s to six aircraft, plus a reserve. The company also would need financial aid of €83.2 million ($107 million) over the next three years.

Cyprus Airways was close to shutting down in 2011, but received financial aid of €20 million annually from the state. Now, European antitrust regulators are questioning whether Cyprus Airways illegally received more than €100 million in public support. The European Commission has barred the Cypriot government from providing any further public support to the airline without prior approval while it assesses whether a €31.3 million capital increase and €73 million rescue aid loan falls outside of European law.

Cyprus Airways reported a provisional full-year net loss of €55.8 million for 2012, more than doubling its €23.9 million loss reported in the year-ago period.