Opponents fear guidelines on incentives will disadvantage publicly owned airports
European regional governments are being urged to lobby the European Commission over new guidelines governing the use of public funds to attract low-fare carriers to airports, due to be published before the end of the year.
Following February's decision that the Walloon state government illegally used public funds to attract Irish budget carrier Ryanair to its publicly owned Brussels South Charleroi airport, the EC promised to publish a series of guidelines, laying out how state aid can be used to bring air traffic to the regions.
Speaking at the Airports Regions Conference last week in Brussels, Roy Griffins, director general of the European division of Airports Council International, called on the EC to deliver its interpretation of state-aid rules as they apply to low-fares airlines as soon as possible and include guidelines covering "exclusivity, duration and transparency" of all deals.
"The important thing is to dissolve the legal uncertainty so regions know what incentives they can provide to continue to attract no-frills airlines," says Griffin.
However, EC insiders who have seen the draft document say it mirrors the Charleroi ruling, prescribes a maximum of five years for any incentive deal and limits state aid to new routes and up to a maximum of 50% of all proven costs. Ryanair say this puts state-owned airports at a disadvantage compared with private airports.
Jim Callaghan, head of governmental affairs for Ryanair, says regions "should not accept this crap from the EC" and has urged them to lobby the Brussels-based executive on their behalf. Callaghan claims the EC has refused to involve representatives from the low-fares carriers in discussions over the new rules.
"The Commission was using Charleroi in order to regulate and it will come out with these guidelines that it will then enforce," he says.
Bernard Garandeau, secretary general of Ville et Aéroports, which represents French publicly owned airport operators, says its members are worried about the effect of the new guidelines, especially if they force regions to prove the economic necessity of the air link. "If you look at airports like Bergerac or Paris Beauvais, where there are other carriers operating on routes from nearby airports, then as we foresee the new rules, any assistance would be illegal," he says.
JUSTIN WASTNAGE / BRUSSELS
Source: Flight International
