Brussels, 02/12/2004 (Agence Europe) - The European Commission is soon to present a communication establishing Community guidelines in the field of aviation. The aim is to establish a clear legal framework setting down modes of financing for airports and extending the possibilities of public aid towards the functioning of airlines, by including start-up aid for airlines flying from regional airports. This legal framework will add to previous guidelines on State aid in the field of aviation, which date from 1994. Once the communication is finalised, it will be sent to the Member States, which will have three months to take position on the document before it is adopted by the Commission.
It is further to the Ryanair case (see EUROPE of 4 February), against a backdrop of emerging low cost airlines and the keenness of airports (especially regional ones) to attract new air liaisons, that the Commission became aware of the need to present a legal framework determining conditions under which aid can be granted to establish airlines in regional airports, in order to make these economically viable without distorting competition. According to the Commission's communication, in order to be approved, aid notified to it must meet several conditions: it must be paid to open new routes from large regional airports (between 1 and 5 million passengers a year), or small regional airports (fewer than one million), and in exceptional cases, from national airports (between 5 and 10 million). The aid can only be paid to open new routes or times (not for existing connections), and certainly not if there is a high-speed rail alternative on this route. They cannot exceed 50% of the start-up costs of the new route and will be limited to five years. They must also be gradually reduced, and not cumulative with other subsidies.
The Commission's new guidelines also provide criteria to be fulfilled for the public funding of airports, either in the context of providing airport installations (building and development of airport infrastructure and equipment), the running of the infrastructure (maintenance and management), the provision of airport services (assistance in stop-overs), or managing activities such as the construction and leasing of offices. As to the public funding of airport infrastructure or equipment, the Commission will determine whether several conditions are being respected, such as: whether the infrastructure is open to all potential users, the limitation of the subsidy to the minimum necessary, whether the investment is justified on the grounds of the objective laid down (regional development, employment etc), accounting separation guaranteeing that the subsidy has been used for the activity it was earmarked for. Another example concerns subsidies for stop-over services, which may be possible for small regional airports (fewer than one million passengers a year), whereas for all those exceeding two million passengers a year, these services must be opened up to competition.