Press Release: State aid: Commission authorises aid for infrastructure at Leipzig Halle Airport; prohibits certain guarantees in favour of DHL

The European Commission decided, under EC Treaty state aid rules, that some €350 million of public investment for a new southern runway at Leipzig Halle airport is compatible state aid. However, the Commission also decided that guarantees worth up to €500 million for express cargo provider DHL, in case Leipzig Airport cannot meet the conditions of a Framework Agreement related to DHL establishing its European hub there, are incompatible with the Single Market. In particular, the Commission concluded that the unlimited guarantee allowed DHL to hedge business risks on terms which a private investor would not have accepted and would distort competition. The Commission opened its investigation in November 2006.