EU Regulators Propose Major Changes to State Aid Rules for Small Airports
Overview of Proposed State Aid Reforms for Small Airports
By Foo Yun Chee
BRUSSELS, May 11 (Reuters) - EU competition regulators on Monday proposed revamping state aid rules for smaller airports, citing Europe's decarbonisation goals and the energy crisis, as part of the first overhaul of EU air transport regulations in more than a decade.
The European Commission said interested parties have until June 11 to provide feedback before it decides whether to proceed or make further changes.
Key Objectives of the Proposal
"Today's proposal ensures that public funding is directed where it is most needed while ensuring a level playing field in the single market," EU antitrust chief Teresa Ribera said in a statement.
Investment Aid Linked to Green Conditions
Under the plan, airports with up to 3 million passengers a year can be granted investment aid tied to green conditions when creating new capacity, compared with up to 5 million previously.
Operating Aid for Smaller Airports
Transitional Support for Medium-Sized Airports
Airports with between 500,000 to 1 million annual travellers can receive operating aid for a transitional five-year period to help them recover from recent challenges and regain profitability.
Exemptions for the Smallest Airports
Airports with fewer than 500,000 passengers a year will not need prior EU approval for government operating aid.
Elimination of Start-Up Aid for New Routes
Regulators also plan to scrap start-up aid for new routes, saying airlines should bear the risk instead.
Timeline and Next Steps
The revamped rules are expected to take effect in the first quarter of 2027.
(Reporting by Foo Yun Chee. Editing by Mark Potter)
