Brussels, 23/03/2006 (Agence Europe) - On Wednesday, the European Commission decided to open a formal investigation procedure into the restructuring plan proposed in November 2005 by the Republic of Cyprus to restore the viability of the ailing State-owned Cyprus Airways. This plan is made up of several measures: a government-backed loan of 96 million euro (55 million Cypriot pounds, the sale of Cyprus Airways' charter company Eurocypria for an expected sum of 26 million euro (15 million Cypriot pounds), reduction in personnel and costs, a capital increase of 24 million euro (14 million Cypriot pounds) 18 months after the start of restructuring. This restructuring plan was a condition for the Commission's authorisation, in May 2005, of a government-backed loan of 51 million euro (30 million Cypriot pounds). The Commission, however, is unsure of whether or not the plan is in line with Community regulations saving and restructuring firms in difficulty, since it is not in a position to assess the exact amount of state aid this plan would include, nor to determine whether this aid would comply with the various conditions applicable (limiting aid to the minimum required and avoiding any form of competition distortion). The Commission will, therefore, send a letter to the Cypriot authorities requesting clarification. Nicosia and interested third parties will have one month to respond.