On Monday 31 July, the European Commission approved State aid granted by the Land of Rhineland Palatinate to Frankfurt-Hahn airport.
The loss-making, Frankfurt-Hahn airport has been controlled by Rhineland Palatinate since 2009. On 1 March, the Land signed a share purchase agreement with the Chinese group HNA to sell it 82.5% of its shares.
The Land's support aims to cover the airport's anticipated operating losses over the period 2017-2021. This maximum level of this aid will be €25.3 million, to be reduced if the operating losses turn out to be less than this.
The Commission examined the aid in light of the 2014 guidelines concerning aviation. These allow public financing to cover operating losses of small regional airports up to 2024, subject to conditions such as presenting a credible business plan demonstrating a return to profitability by April 2024.
The institution found that the state financing would cover the operating losses and that the HNA Group would make the necessary investments to return the airport to profitability in 2023. It also noted that the airport was important to the local economy. Finally, the Commission noted the absence of any other airports within a close radius of Frankfurt-Hahn airport, reducing the potential negative effects of the measure on competition and trade.
The Commission therefore concluded that the aid was compatible with the EU State aid rules. (Original version in French by Lucas Tripoteau)