Cyprus Airways has had shut down following an EU decision that the company must repay over 65 million euros in illegal state aid, BBC online news reports.
The EU commission found that the Cypriot government had broken EU rules on supporting companies in financial difficulties.
CA had been receiving aid regularly between 2007 and 2013.
The South Cyprus government had been struggling to find outside investors to save the largely state-owned company from total collapse.
Finance Minister Harris Georgiades said that “the company has ceased being a viable entity, and cannot continue to operate.”
Alternative arrangements would be made covering Cyprus Airways flights from Saturday, he said.