European competition regulators have ruled that DHL must repay the benefits of guarantees linked with the establishment of its new hub at Leipzig Halle airport.
The European Commission (EC) opened the state aid probe in November 2006, investigating financial guarantees and the financing of a new southern runway at Leipzig/Halle supported by the airport’s main shareholder, Saxony.
Today the Commission has delivered a mixed ruling on the case, authorising €350 million ($551 million) in funding for the new runway development but prohibiting guarantees which were made to DHL.
A comfort letter issued by Saxony guaranteed DHL up to €500 million should Leipzig Airport not be meet the conditions of the companies’ framework agreement.
The Commission says: “The Commission has concluded that the unlimited warranties granted by the framework agreement and the comfort letter constitute aid in the meaning of EC treaty state aid rules because [the Land of Saxony], [Leipzig Airport parent company] Mitteldeutsche Flughafen, and Leipzig Airport hedge business risks for DHL at terms which a private investor would not have accepted.
“The unlimited warranties granted by the framework agreement and the comfort letter must therefore be abolished. The part of the aid which has already unlawfully been put at the disposal of DHL must be recovered.”
Source: Air Transport Intelligence news
Source: Flight International
