In the EU, a commercial-rate loan from Government can
still be considered as illegal state aid if a rational private investor would not have made the same investment on a raw financial basis, or if the loan distorts market competition.
As an example of the thinking involved:
http://www.mwe.com/European-Commissi...a-f0bb5170ab6d
Would
you, as a market-wise private-sector airline investor, have made the loan to FlyBE? Discuss, with reference to previous attempts to establish routes out of Cardiff.