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) (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.