European Commission extends probe into state aid at regional airports

The EC is upping the number of investigations into possible improper state aid
at regional airports in the 27 member states, and has confirmed it launched in-depth
investigations at Marseille and Frankfurt Hahn. The EC currently is investigating
aid to Wizz Air at Timisoara airport in Romania, aid to infrastructure at the
Leipzig-Halle airport in Germany and aid to Dortmund airport and the airlines
using it. Some subsidies may be distorting competition.

5.8.2011 (Air Transport World)

By Cathy Buyck

 

The European Commission is upping the number of investigations into possible
improper state aid at regional airports in the 27 member states, and last month
confirmed it launched in-depth investigations at Marseille and Frankfurt Hahn.
The EC currently is investigating aid to Wizz Air at Timisoara airport in Romania,
aid to infrastructure at the Leipzig-Halle airport in Germany and aid to Dortmund
airport and the airlines using it.

“State aid may, under certain conditions and circumstances, constitute an appropriate
instrument to develop small regional airports and air transport services. However,
the Commission also has a duty to avoid distortions of competition within the
EU’s single market and some of the regional airports in Europe are no longer so
new or small,” commented EC-VP Competition Joaquin Almunia.

EC is analyzing public support received by MRS for its low cost terminal “mp2”
and fee reductions awarded to airlines, both low cost and incumbent companies.
Between 2005 and 2007, the operator of the Marseille airport (the local Chamber
of Commerce) received a subsidy of €7.6 million for the construction of mp2 and
“at this stage, the Commission has doubts whether the subsidy was necessary to
carry out the investment and whether the aid was proportionate to the objectives
pursued.” Moreover, the EC has doubts whether lower fees for airlines using the
LCC terminal and discounts for the start-up of new routes “did not procure a selective
advantage to the beneficiaries.”

At Frankfurt-Hahn airport, the EC is investigating whether a series of loans
and refinancing of loans granted to the airport by publicly-owned bodies were
granted under market conditions. “At this stage the Commission takes the preliminary
view that these measures merely contribute to pay the operating costs of the airport.
Frankfurt-Hahn airport is currently the 10th largest passenger and the 5th largest
cargo airport in Germany and 21st largest in Europe,” it stated. “Therefore, the
Commission is particularly concerned that the aid may be giving the airport an
unfair advantage vis-à-vis its competitors.”

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