EC unveils guidelines on funding to attract carriers
The European Commission has published guidelines for publicly-owned airports to use funds to attract airlines, as the European Court of Justice (ECJ) looks likely to uphold the legality of new passenger compensation rules.
The EC says the guidelines are intended to allow local governments in Europe to use public funds to attract low-fare airlines to their regional airports without breaching tough European anti-subsidy rules.
The guidelines were promised as part of the response to the ECJ ruling that Belgium’s Walloon state had abused state aid rules in striking a deal with Irish carrier Ryanair to establish a base in Brussels South Charleroi airport. The guidelines state that funds “cannot be more than the task assigned”, designed to allow airports to offer airlines marketing assistance, but not to use that description to cover other costs.
The guidelines, which will be used by judges to assess future cases, also call for transparency and open tenders, and reinforce the 2 million passengers maximum annual limit set out in the ground-handling directive for competition in airport services.
However, the EC says it encourages the growth of regional airports as a way to ease congestion at major hubs.
Meanwhile, an initial opinion from the judges examining the legal challenge brought by the International Air Transport Association and the European Regions Airline Association has stated that the EC’s passenger compensation rules are legal. The ECJ is expected to rule officially next week and is likely to confirm this view.
JUSTIN WASTNAGE/BRUSSELS
Source: Flight International
