Brussels, 20/07/2005 (Agence Europe) - On Wednesday 20 July, the Commission approved a state aid scheme for passengers from the French island of La Réunion flying to mainland France. The scheme will be valid for one year and compensate the island's inhabitants for the continual disadvantage they face from transport costs that are far higher than for people living on the French mainland.
The aid scheme is for certain categories of La Réunion residents, including those aged between 18 and 25, people over 60 and people who have to travel to metropolitan (mainland) France for professional or personal reasons (taking a competition or a professional examination, taking up a job, family misfortunes, transport for disabled persons and their escorts, or escorting a sick child). The aid will be granted irrespective of the airline they fly with, and cover 30% of the price of a return ticket, per year and per person, on scheduled flights between La Réunion and mainland France.
The Commission concluded that this scheme constitutes state aid to airlines. By generating a greater air service demand than would have existed without such aid, the scheme gives an advantage to transport operators servicing these routes, and this disadvantage is funded from public resources. However, in accordance with consolidated practice and precedents in other Member States, the Commission has taken the view that this aid is compatible with the common market because it effectively benefits individual consumers, is social in character and is granted without any discrimination irrespective of the airline operating the relevant flights.