The European Commission is inviting comments on its review of EU state aid rules on the public financing of airports and start-up aid to airlines. During the last ten years, the market environment of the aviation industry has changed considerably. The Commission proposal takes account of this evolution and provides guidance on how Member States can support airports and airlines in line with EU state aid rules. In light of the submissions received, the Commission will adopt revised guidelines in the beginning of 2014.
Joaquín Almunia, Commission Vice-President in charge of competition policy, said: “Our aim is to ensure that taxpayers’ money is well-spent and goes where it is truly needed. The next state aid guidelines will be a key ingredient for a successful and competitive European aviation industry, preserving fair competition regardless of the business model – from flag carriers to low-cost airlines and from regional airports to major hubs”.
The Commission has published a draft of revised state aid rules for the public funding of airports and start-up aid to airlines.
The main provisions of the proposed guidelines (see MEMO/13/639) are:
- State aid for investment in airport infrastructure is allowed if there is a genuine transport need and the public support is necessary to ensure the accessibility of a region. Whereas the current guidelines leave open the issue of investment aid intensities, the revised draft rules define maximum permissible aid intensities depending on the size of an airport, in order to ensure the right mix between public and private investment. The possibilities to grant aid are therefore higher for smaller airports than for larger airports.
- For operating aid to airports, which is not allowed under the current guidelines, the Commission proposes to allow such aid for a transitional period of 10 years under certain conditions, in order to give airports time to adjust their business model. Operating aid will decrease during this period. The path will depend on the financial situation of each airport.
- Start-up aid to airlines to launch a new air route is permitted provided it remains limited in time. In the draft new guidelines, the compatibility conditions for start-up aid to airlines have been streamlined and adapted to recent market developments.
The proposal takes into account the results of a first public consultation in 2011. It also reflects the principles of the Commission’s agenda for State Aid Modernisation (IP/12/458): state aid policy should focus on facilitating well-designed aid aiming at boosting economic growth and furthering other objectives of common European interest, while discouraging harmful aid that does not bring real value added and create distortions to competition in the Single Market.
The proposal is available at: http://ec.europa.eu/competition/consultations/2013_aviation_guidelines/index_en.html
Comments should be sent by 25 September 2013 to: [email protected]