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Europe Daily Bulletin No. 10354
Contents Publication in full By article 29 / 34
GENERAL NEWS / (eu) eu/state aid

Consultation on aid for aviation sector

Brussels, 07/04/2011 (Agence Europe) - The air transport market has changed dramatically over the last two decades. On Thursday 7 April, therefore, the European Commission launched a public consultation to gather information which will, in the words of Competition Commissioner Joaquín Almunia, help it “assess whether the guidelines published in 1994 and 2005 remain appropriate for the market conditions of today or need to be changed and how”. Submissions can be made until 6 June 2011.

In 1994, as part of the liberalisation of the market for air transport services, the Commission adopted the first EU aviation guidelines, which contain provisions for assessing social and restructuring aid to airlines in order to provide a level playing field for air carriers. They were complemented, in 2005, by guidelines on the public financing of airports and on the start-up of airline services from regional airports. Since the 2005 guidelines came into force, the Commission has adopted more than 60 decisions concerning the financing of airports, airlines and start-up aid for the financing of new routes.

The air transport market has evolved dramatically in recent years: low-cost carriers have developed new and comprehensive business models linked to regional airports and have gained substantial market shares. At the same time, the former national carriers have almost all completed their restructuring process, consolidating their presence in Europe.

In a recent landmark ruling (case T-452/08), the General Court confirmed that the construction of airport infrastructure is part of the economic activity of operating an airport and that state financing towards this end is state aid, unless the infrastructure is used to perform public interest tasks such as security, air traffic control, police and customs (see General Court's judgement on 7 October in the DHL-Leipzig-Halle airport Commission decision of July 2008). In December 2008, the General Court also annulled the Commission's decision in the Ryanair-Charleroi case. The Commission has a significant number of complaints in the sector from the former flag carriers against the low-cost airlines, on the one hand, and from the latter against the former, on the other hand.

The purpose of the consultation that was opened on Thursday is to invite member states and stakeholders to provide feedback on the application of the 1994 and 2005 aviation guidelines. The Commission would be particularly interested to receive information about the changes in the business models of airlines and airports and recent developments concerning the financing of infrastructure and start-up aid to airlines.

The Commission will consider the submissions received prior to deciding the extent to which changes to current rules are necessary and, if appropriate, will bring forward a proposal for revised aviation guidelines by 2012. The public consultation is available at: http: //ec.europa.eu/competition/consultations/2011_aviation_guidelines/en.rtf (O.L./transl.rt)

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