In May 2005 the Commission authorised the grant of a Government-backed loan of EUR 51 million in order to restore Cyprus Airways’ viability. In November 2005 Cyprus proposed, in addition to this loan, a restructuring plan comprising (i) a loan amounting to EUR 96 million and guaranteed by the Government up to EUR 78 million; (ii) the sale of Cyprus Airways’ charter division to the Government with the obligation that Cyprus Airlines and the separate charter division would be run as independent competitors; and (iii) a capital increase of EUR 24 million involving public and private shareholders. Following its investigation, the Commission has now concluded that this restructuring plan is compatible with EU guidelines on restructuring aid.