Air transport, start of consultation on new state aid guidelines

The European Commission has launched a public consultation on revised draft guidelines on state aid to the air transport sector, which will replace the existing guidelines adopted in 2014. The consultation will run until 11 June. The proposed changes concern operating aid to airports, which will be possible for airports with less than one million passengers per year.Airports with more passengers will have to cover their own operating costs. Airports with up to 500,000 passengers per year should generally not be economically viable without public support, but they represent only a small share of passenger traffic, so they usually have a limited impact on competition.

Brussels proposes a block exemption of operating aid for airports with a maximum of 500,000 passengers per year, according to the new general regulation on airport policies due to be adopted in 2026. Airports with between 500,000 and one million passengers per year often still experience significantly lower traffic levels than before the pandemic. While the Commission believes they are large enough to be profitable, it recognises that, due to the external shocks of recent years, they may need more time to reach profitability.The Commission therefore considers it justified to grant operating aid to airports with up to one million annual passengers for a transitional period of five years. Investment aid would be possible for airports with up to three million passengers per year, instead of up to five million as under the 2014 Aviation Guidelines, and subject to 'green' conditions if new capacity is created.

The proposal also provides for the revision and simplification of the analysis of the potential distortive effects of State aid on neighbouring airports, which is part of the assessment when aid is notified. This analysis covers the effects of State aid in a wider geographical area around the beneficiary airport than under the 2014 rules. The analysis itself has also been simplified to allow for a more direct assessment.

Initial aid for launching new routes will no longer be permitted. So far, they have been used very rarely and the air transport industry has opened many new routes without relying on them. In a fully liberalised air transport market, airlines are expected to take the risk of opening new routes.

The Commission notes that, as part of the European Green Deal, the transport sector should reduce its emissions by 90% by 2050 and the aviation sector should contribute to this reduction. To this end, the aviation sector can benefit from specific State aid measures for decarbonisation, which are available under existing rules, such as the Climate, Energy and Environmental Aid Guidelines, the new General Regulation for Regulatory Standards and the Clean Industrial Deal State Aid Framework. To clarify how these rules apply to aviation, the Commission will publish a specific guidance document.