Air transport services, the construction of airports or airport infrastructures, their renovation and expansion, airport management and the provision of airport services cannot be freely financed with public funds, such as funds from Regions, local authorities and even companies held by public bodies. These types of operations are specifically governed by the new Guidelines on State aid to airports and airlines (C (2014) 963), dated 20 February 2014, by the package on State aid for services of general economic interest (SGEI) and by Regulation (EC) n. 1008/2008, which now make up the overall system of rules that operators and lawyers need to consider in order to lawfully carry out development operations through public funding in such an important sector.

Mere investment operations, which meet the rules and the interests of the market, fall outside the scope of the sources mentioned above.

There is still the possibility of imposing public service obligations, entering into public service contracts and in any case establishing services of general economic interest, for example to finance air connections, also in order to ensure territorial continuity. These measures must meet the criteria identified by the Altmark case or, alternatively, art. 106.2 TFEU, as implemented by Council Decision 2012/21 / EU and the SGEI Framework, without prejudice to Reg. (CE) n. 1008/2008 for air transport services.

Other instruments to finance air connections are  aid of a social nature, aimed at granting reductions in the price of tickets for specific categories of users considered as disadvantaged (such as passengers with mobility problems, the elderly, students, residents of islands or of remote regions), and aid for launching new flight connections, aimed at promoting the development of airports, eligible under the conditions laid down in the 2014 Guidelines.

As for the infrastructural side, possible interventions using public resources, which do not correspond to mere market investments, are governed by the 2014 Guidelines.

Investments are, therefore, allowed when aimed at covering the costs related to infrastructures and aviation facilities of airports, provided that they pursue a well-defined objective of common interest, without leading to overcapacity in the region concerned, and meet the criteria set for this purpose by the aforesaid Guidelines.

Operating aid directed to airports is considered to be compatible only for a transitional period of ten years for airports and under the conditions set forth in the new guidelines.

Upon expiry of the transitional period, certain aid measures could be considered compatible under the existing general framework (i.e. which do not relate exclusively to the specific transport sector) in the field of State aid.

(Bologna Office – Antitrust, Competition & State Aids Department – 051 2750020)

 

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