Brussels, 03/07/2013 (Agence Europe) - Aid should focus on where there is genuine demand, the market is failing or the airport cannot become profitable in the short-term. That is the essence of the new state aid guidelines for airports and the launch of new airlines, published by the European Commission as part of the process of updating its state aid rules, on which it organised a consultation of interested parties on Wednesday 3 July.
The revised guidelines will replace the 2005 guidelines next year, adjusted to match changes in the market and the objectives of the EUROPE 2020 strategy. They say that public aid must only be provided where there is genuine value-added by allowing the construction or functioning of infrastructure to meet a real transport need and for which the market will not provide the cash. The guidelines discourage aid for airport infrastructure surplus to requirements or not profitable in the long-term, and also discourage companies from shopping around for subsidies when they sign agreements with unprofitable or struggling regional airports. On aid for investment in infrastructure, the new guidelines set aid caps in relation to an airport's size in order to ensure a good balance between public and private finance. Small airports (up to 3 million passengers a year) and medium-sized airports (between 3 and 5 million passengers) should be more eligible for state aid than big airports (with more than 5 million passengers). On financing operating costs, the guidelines say that public aid should be ruled out, but they leave a ten-year adjustment period for small and medium-sized airports during which time aid will be phased out, with each case being examined on its own merits. Exemptions would be possible for loss-making small airports (fewer than 200,000 passengers a year) that are needed to fulfil a public service need. State aid for airlines for new routes would be allowed as long as there is a time-limit on the aid. (FG/transl.fl)