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Image header Agence Europe
Europe Daily Bulletin No. 12795
ECONOMY - FINANCE - BUSINESS / State aid

Recapitalisation of Air France, green light for allocation of slots at Paris-Orly Airport to Vueling

On Monday 20 September, the European Commission decided to rank Vueling first among the air carriers that had applied for the portfolio of up to 18 daily slots at Paris-Orly Airport.

These slots will be made available by Air France to remedy possible undue distortions of competition after the recapitalisation of the airline by the French State, as approved by the Commission in April 2021 (see EUROPE 12692/11).

Vueling will obtain 18 daily slots at Paris-Orly airport, and will start operating new routes from November 2021.

On 5 April 2021, France obtained the green light to grant up to €4 billion for the recapitalisation of Air France through its holding company. France needed to take additional measures to preserve effective competition.

France offered commitments in relation to Paris-Orly airport, where Air France has significant market power. The airport is structurally highly congested.

These commitments involve Air France making available up to 18 slots per day at Paris Orly Airport to a competing carrier, in order to allow the lasting entry or expansion of this competing carrier at this airport, for the benefit of consumers. In addition, the commitments require the competing carrier which obtains Air France’s slots to base the aircraft to be used in those slots at Paris Orly Airport.

The Commission, assisted by the Monitoring Trustee, assessed in detail the proposals received, giving priority to carriers already operating a base at Paris Orly Airport and then ranking the proposals according to the level of capacity and connectivity that the carriers would achieve by using the slots made available by Air France.

The Commission has ranked Vueling’s proposal in first place. Vueling now has priority to conclude with Air France the agreement giving access to the slots that will allow Vueling to expand its operations at Paris-Orly airport and to offer new flights as from November 2021.

Link to the case: https://bit.ly/3ibNrAP (Original version in French by Lionel Changeur)

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