Charlie Airlines (Larnaca) has signed a licencing agreement with the Cypriot government wherein the start-up carrier will have access to the Cyprus Airways (1947) (CY, Larnaca) logo and brand.

Under the terms of the EUR2.04 million (USD2.25 million) deal signed in Nicosia last week, the start-up will be able to use the defunct airline's logo and brand for a period ten years with an option to renew it for a further five. The Cypriot government will, however, remain the owner of the brand and will conduct regular audits to ensure its good-standing.

The Cypriot Ministry of Finance acquired the logos, trademarks, and branding rights to Cyprus Airways in December 2014 for EUR1.2 million. The carrier collapsed a month later following a European Commission (EC) ruling which ordered it to repay EUR102million (USD120 million) in illegal state aid.

Charlie Airlines is a 40/60 joint-venture between Russia's S7 Holdings and a consortium of Cypriot investors. Once all regulatory hurdles are cleared, the start-up intends to launch flights using two S7 Airlines (S7, Novosibirsk) A319-100s to destinations in the UK, Greece and Russia.