On Tuesday 19 May, the European Commission approved a Finnish aid measure consisting of a State guarantee on a €600 million loan to Finnair to mitigate the economic impact of the coronavirus pandemic on the company.
The measure was approved under the State Aid Temporary Framework adopted by the Commission on 19 March 2020, as amended on 3 April and 8 May 2020.
Since the beginning of the pandemic, due to travel restrictions imposed by Finland and by many destination countries, “the airline has suffered a significant reduction in its services, which has led to a serious liquidity shortage”, the Commission explains.
The support measure reported by Finland will take the form of a State guarantee covering 90% of a €600 million loan granted to Finnair by a pension fund.
“Finnair requires the State-backed guarantee to obtain vital liquidity to face this difficult period, before an expected recovery in sales once the restrictions are gradually lifted”, the Commission argues. Finland has also demonstrated that all other potential means of obtaining liquidity on the markets have already been explored and exhausted.
The Commission concluded that the Finnish measure complies with the conditions laid down in the Temporary Framework. It concluded that the measure is necessary, appropriate and proportionate to remedy a serious disturbance in the economy of a Member State, in accordance with Article 107(3)(b) of the Treaty on the Functioning of the EU and the conditions set out in the Temporary Framework.
On this basis, the Commission approved the measure under EU State Aid rules. (Original version in French by Lionel Changeur)