The new EU guidelines on state aid to airports and airlines

In February 2014, the European Commission adopted its new guidelines on state aid to airports and airlines. They provide guidance for all public funding in favour of airports and airlines, and they detail the conditions needed for the Commission’s authorisation for investment and operating aid for airports and start-up aid to airlines. A week earlier, it had ordered Gdynia airport reimburse EUR 20 million illegal aid it had received and many pending investigations are due to be finalised in the coming months. Airports and airlines can no longer ignore these European constraints when they benefit from a public intervention, for instance a subsidy for a new infrastructure, repayable advances to cover operational losses, rebates on airport charges or handling fees, and marketing incentives. This article seeks to present the framework applying to this public funding.