EasyJet has secured the green light to take over part of failed Air Berlin’s operations at Berlin Tegel airport after the European Commission ruled it would not adversely affect competition in the EU.
A loan of up to €150m from the German government has been approved by the European Commission, ensuring Air Berlin will continue to operate over the coming months.
The European Commission has found that public funding granted by Austria to Klagenfurt airport is in line with European Union (EU) state aid rules, but as ruled that certain airport services and marketing agreements concluded between the airport operator and airlines Ryanair, Hapag-Lloyd Express and TUIfly gave the latter “an undue advantage”, which cannot be justified under state aid rules.
With a population of around 30,000 and an economy dominated by financial services, online gambling, shipping and tourism, Gibraltar is currently a major talking point with European aviation regulators, perhaps even more so than the subject of Brexit that dominates the headlines across the continent.
The United Kingdom woke up this morning to the news that the country’s people had voted to leave the European Union. By a small majority, 52 percent of residents voted for independence, a decision that could change the political landscape of Europe forever and could bring an end to the United Kingdom, as both Scotland and Northern Ireland look to maintain membership of the European Union.
Aviation is a strong driver of economic growth, jobs, trade and mobility for the European Union and plays a crucial role in the EU economy. The sector employs almost two million people in the EU and is worth €110 billion to Europe's economy. Over the last 20 years, the EU's liberalisation of the internal market for air services and the substantial growth of demand in air transport within the EU and worldwide, have resulted in the significant development of the European aviation sector. The aviation traffic in Europe is predicted to reach 14.4 million flights in 2035, 50 per cent more than in 2012.
The investigations concern in particular marketing fees paid to Wizz Air by Cluj-Napoca International Airport and low airport charges offered by Târgu Mureş Transilvania Airport to airlines operating there. Furthermore, the Commission will also investigate subsidies by local authorities to the airports themselves.
The new Guidelines on state aid in the aviation sector offer Member States a degree of flexibility in granting investment aid which they consider necessary for regional airports. In addition, operating aid may be granted for a transitional period of ten years to airports with fewer than three million passengers. Airports with up to 700,000 passengers may benefit from operating aid regardless of any transitional period.
