The European Commission has authorised several EU countries to provide aid to rescue airlines suffering from the effects of the coronavirus pandemic. Some of this national aid has been authorised under the State Aid Temporary Framework.
The European institution gave the green light, on Friday 21 August, to EUR 290 million in national aid granted by Belgium to the SN group (SN Airholding and Brussels Airlines). The aid includes: - a 6-year soft loan of up to EUR 287.1 million, not convertible into equity, which can be used at will for minimum disbursements of EUR 30 million; - a recapitalisation of EUR 2.9 million in the form of ‘shares in profits’.
The aid forms part of a broader package of support measures granted by Germany to the entire Lufthansa group, of which the SN group is part (see EUROPE 12514/6). Following the granting of the aid by Belgium, the overall aid previously granted to the Lufthansa group will be reduced accordingly.
Romania. On 20 August, the Commission validated a loan guarantee of about €62 million granted by Romania to the airline Blue Air.
Portugal. On 19 August, EUR 133 million in liquidity support was authorised for SATA Air Açores (SATA). This aid will enable the airline to fulfil its public service obligations, provide essential services, and ensure connectivity for the outermost region of the Azores.
SATA is not eligible for support under the State Aid Temporary Framework, which is aimed at companies that were not yet in difficulty on 31 December 2019. The Commission therefore assessed the measure under the 2014 State Aid rescue and restructuring guidelines.
In addition, the Commission has opened an investigation to determine whether certain public aid to SATA is in line with these 2014 guidelines. Since 2017, the Autonomous Region of the Azores has authorised three capital increases to partially cover the company’s equity deficits.
Denmark/Sweden. On 17 August, the Commission authorised the Danish and Swedish plans to contribute EUR 1 billion to the recapitalisation of SAS (EUR 583 million via Denmark and EU 486 million via Sweden).
Following this recapitalisation, the revolving credit lines, for which Denmark and Sweden had offered a 90% guarantee and which were authorised by the Commission on 15 April 2020 and 24 April 2020 (see EUROPE 12467/15), will be cancelled.
Germany. On 11 August, the Commission validated German support to all national airport operators, again in the context of the pandemic.
The German authorities will be able to: - compensate airports, by means of direct subsidies, for loss of revenue between 4 March and 30 June 2020 (any compensation exceeding the actual loss must be returned to Germany with interest); - provide liquidity support in the form of grants, loan guarantees, subsidised interest rates, and deferrals of certain taxes and charges to airports facing cash shortages.
Estonia. On 11 August, the institution authorised an Estonian measure of EUR 30 million to grant an increase in share capital and a subsidised loan to the airline Nordica.
Miscellaneous. In August, the Commission also approved public aid for other economic sectors affected by the coronavirus pandemic: - EUR 6 billion in German support to compensate companies providing regional/local public passenger transport services; - a Bavarian fund providing liquidity and capital of up to EUR 46 billion to Bavarian companies; - EUR 665 million in Austrian support for non-profit organisations; - EUR 2 billion in Italian aid to support the credit insurance market; - an Irish loan guarantee scheme mobilising EUR 2 billion in support of businesses. (Original version in French by Lionel Changeur)