Following its decision on Charleroi Airport, the Commission is proposing clear rules on investment in airports both at infrastructure level and…
Following its decision on Charleroi Airport, the Commission is proposing clear rules on investment in airports both at infrastructure level and with respect to start-up aid. These rules authorise start-up aid for new routes opened at secondary airports, which at times are underused, albeit subject to strict conditions of transparency and with time limits. The facilities should also guard against all forms of discrimination to the exclusive benefit of any one company. The proposed guidelines likewise seek to clarify methods for the financing of airport infrastructure.
The Commission is publishing on the Internet a draft set of guidelines on the financing of airport infrastructure and State aid for the start-up of new routes departing from regional airports. On this occasion, Vice-President Jacques Barrot, the Commissioner with responsibility for transport, declared: Steps need to be taken to promote the regional airports and the development of new air services in Europe. At the same time, everything must be done to ensure equality of treatment between companies and between airports. It is with this in mind that I propose to clarify the rules.
The decision on Charleroi Airport authorised start-up aid for Ryanair, while at the same time imposing precise conditions governing such authorisations. On this occasion the Commission had sent out a signal indicating that it favoured regional development and the emergence of new companies. Increased competition within the European Union, notably through the emergence of low-cost companies, is prompting many airports to take active steps to encourage certain companies to open up new air services. As a result of this trend, air transport can be provided on a far wider scale and at much reduced prices, thereby contributing to regional economic development and the reduction of congestion at the hub airports.
The Commission intends to encourage this trend. At the same time, however, it has to ensure equality of treatment between airport operators and between companies. Its draft routing guidelines will allow greater transparency, while at the same time avoiding any discrimination in the agreements jointly entitling regional airports and the airlines to start-up aid. The draft guidelines restrict such aid to between 30 and 50% of the additional costs over a period not exceeding 5 years. This framework will facilitate the conclusion, with enhanced legal certainty, of numerous agreements throughout the European Union.
The Commission draft will also be seeking to clarify the framework of investment in airport infrastructure.
The construction or financing by the public authorities of an airport infrastructure which they themselves own does not, in principle, raise any question of State aid, inasmuch as the public bodies collectively involved are acting in the exercise of the powers of a public authority. On the other hand, the Commission will take steps to ensure that no advantages accrue to any particular airport manager as a result of the infrastructure funding, and that access to the infrastructure will not favour one or more airlines.
The Member States are being consulted on the draft guidelines. The Commission is also consulting the public on the draft. All interested players can submit their comments. The Commission will adopt the definitive guidelines in several months` time after taking account of the various representations made.
Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.
