ACI Europe responds to state aid guidelines

John Rimmer

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The European airports association welcomes the European Commission's efforts to regulate start-up aid, but calls for more clarity and flexibility

Following the European Commission's publication of guidelines on airport financing last month, ACI Europe has responded with a call for more flexibility and clarity on what constitutes state aid. The issue hit the headlines last year when no-frills carrier Ryanair was accused of accepting illegal subsidies from Belgium's Charleroi airport, and ordered by the EU to repay what it had received.

The Commission's new consultation paper offers guidance on the incentives airports may or may not offer airlines, but ACI Europe director general Roy Griffins argues that the association's members require more clarity on the matter. "They are looking for a transparent framework from the European Commission and unless they get it, the court cases will continue and passengers and local economies will suffer. We must get these guidelines right. That means explicit definitions of exactly what kind of investment constitutes state aid; what incentives may be used to attract an airline to an airport, and exactly how much start-up aid may be given to an airlines. On these issues the Commission needs to rethink and clarify its position."

The Commission has recommended that start-up aid be limited to a maximum of 50% of start-up costs over five years, a limit that ACI Europe believes is too restrictive. It believes a flexible, case-by-case approach is more appropriate.

ACI Europe also argues that as long as an airport is self-financing, any means to develop infrastructure and improve traffic should be allowed, regardless of whether the airport is private or state-owned. Once these developments meet competition requirements, they do not qualify as state aid, the association believes. It also called for recognition of the long-term nature of airport investments, with investors often making returns as long as 20 years into the future.

Click here to view the Commission's guidelines on airport financing and state aid.