Communication extending the transitional period provided for in the Guidelines on State aid to airports and airlines concerning regional airports

Summary:

Communication published by the European Commission on 11 July 2023, concerning the extension of the transitional period provided for in the Guidelines on State aid to airports and airlines concerning regional airports.

Further information:

The Guidelines were adopted in 2014 and they specify the conditions under which public financing of airports and airlines may constitute State aid within the meaning of Article 107(1) TFEU, and when it does constitute State aid, the conditions under which it can be declared compatible with the European Union's (EU) internal market.

Historically, regional airports have often relied on public support to finance their operations. Therefore, the Guidelines provide that certain categories of operating aid to airports can still be justified under certain conditions in order to enable regional airports to adjust their business model. For that effect, the Guidelines provide for a transitional period of ten years from April 2014 during which airports with annual average traffic of up to 3 million passengers can receive operating aid. By the end of the transitional period in 2024, all airports must have reached full coverage of their operating costs and no operating aid to airports will be considered compatible with the internal market after that date, with the exception of operating aid granted in accordance with horizontal State aid rules.

The Guideline also recognise that airports with annual passenger traffic of up to 700 000 may face increased difficulties in achieving full cost coverage during the 10-year transitional period. A specific regime for such airports was introduced, which was prolonged in 2018 until April 2024. However, since the adoption of that extension, the aviation sector has faced major challenges relating to the COVID-19 (coronavirus) pandemic and the effects of Russia's invasion of Ukraine.

For this reason, the European Commission decided to extend the existing rules on operating aid to regional airports, as well as the specific regime applying to the smallest airports, until 3 April 2027. The Communication was announced by the Commission on 7 July 2023 and published in the Official Journal on that same day.

• Primary Source

News

Airport Technology, 11/07/2023: EU extends regional airport grant programme https://www.airport-technology.com/news/eu-extends-regional-airport-grant-programme/

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Official

European Commission: Public Consultations: State aid – Prolongation of transitional period provided for in the 2014 Aviation Guidelines concerning regional airports (2023) https://competition-policy.ec.europa.eu/public-consultations/2023-aviation-guidelines_en

European Commission: Press Release, 07/07/2023: State aid: Commission prolongs the possibility to grant operating aid to certain regional airports https://ec.europa.eu/commission/presscorner/detail/en/ip_23_3710

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