In a decision on Tuesday 18 July, the European Commission concluded that the former public support regime of the Belgian authorities to three airlines constituted state aid that was incompatible with European Union law.
The scheme in question was created in January 2014 and consisted of aid in the region of €19 million in favour of airlines operating from Brussels National Airport (Zaventem). Amongst other things, airlines transporting more than 400,000 passengers leaving from this airport in 2012 saw that airport taxes reduced.
As only Brussels Airlines, TUI Airlines Belgium and Thomas Cook Airlines Belgium actually met the conditions, they were eligible for the support from the Belgian state. They received €16.8 million, €2.1 million and €77,000 respectively. The first tranche of aid was paid out in September 2014 and subsequent payments were suspended as a result of the European Commission opening an in-depth investigation on 1 October 2014 (see EUROPE 11167).
The institution's investigation confirmed that the regime set up by the Belgian state constituted State aid that was incompatible with article 107 at the Treaty on the functioning of the European Union (TFEU), as the aid gave the three airlines an unjustified competitive advantage over their competitors.
However, the Commission notes that the Belgian authorities cooperated with it during the in-depth investigation, having cancelled the measure in March 2017 and required the beneficiary airlines to pay back the money to the state. (Original version in French by Lucas Tripoteau)