Jes
7th Sep 2005, 07:31
David Gow in Brussels
Wednesday September 7, 2005
The Guardian
The European commission yesterday gave approval for a big expansion of EU regional airports, including more than a dozen in Britain, to combat congestion at major hubs and encourage low-cost airlines. It set strict guidelines for state aid to airports handling fewer than 5 million passengers a year that enable them to hand over up to 50% of a low-cost carrier's start-up costs.
The rules arise out of a row with Ryanair, Europe's biggest low-cost carrier, over aid from the Belgian regional airport at Charleroi to persuade the airline to move there.
The EC said the deal, which saw Charleroi give Ryanair 90% of its costs over 15 years, was illegal and ordered the carrier to repay €4m (£2.7m) in a case now before the European court of justice.
Jacques Barrot, transport commissioner, said the deal had been excessive. Regional airports can now grant aid over three years to start-up airlines to cover costs such as marketing and building maintenance sheds.
The aid, limited to 50% in the first year, must not be more than 30% in total and can be broken off if the airline reaches break-even within the three years. In poorer regions, airports such as Cardiff can offer aid over five years and limit it to 40% of start-up costs. Eligible UK airports include East Midlands, Aberdeen, Prestwick, Southampton and Exeter.
This needs more research. If it applies only to new airlines it's not much use; if it applies to an airline new at an airport it looks quite good.
Edit: here's more from Forbes, that helps to answer my point.
EU Sets Rules for State Aid to Airports
The European Commission on Tuesday approved long-awaited rules governing state aid to regional airports, putting a ceiling on the percentage of costs that can be covered by public money in the establishment of carriers' new routes.
The commission, executive arm of the European Union, also said it would soon adapt rules for allocating takeoff and lading slots, computer reservation systems and baggage-handling services in a bid to boost competition among operators.
Under the new regulations, airports with fewer than 5 million passengers a year are eligible for public money. State aid must be restricted to between 30 and 50 percent of an airline's costs of starting up a new route, typically for up to three years.
Airports on the fringes of the EU or in poorer areas - where gross domestic product per capita is less than 75 percent of the EU average - can get state aid for up to five years.
Wednesday September 7, 2005
The Guardian
The European commission yesterday gave approval for a big expansion of EU regional airports, including more than a dozen in Britain, to combat congestion at major hubs and encourage low-cost airlines. It set strict guidelines for state aid to airports handling fewer than 5 million passengers a year that enable them to hand over up to 50% of a low-cost carrier's start-up costs.
The rules arise out of a row with Ryanair, Europe's biggest low-cost carrier, over aid from the Belgian regional airport at Charleroi to persuade the airline to move there.
The EC said the deal, which saw Charleroi give Ryanair 90% of its costs over 15 years, was illegal and ordered the carrier to repay €4m (£2.7m) in a case now before the European court of justice.
Jacques Barrot, transport commissioner, said the deal had been excessive. Regional airports can now grant aid over three years to start-up airlines to cover costs such as marketing and building maintenance sheds.
The aid, limited to 50% in the first year, must not be more than 30% in total and can be broken off if the airline reaches break-even within the three years. In poorer regions, airports such as Cardiff can offer aid over five years and limit it to 40% of start-up costs. Eligible UK airports include East Midlands, Aberdeen, Prestwick, Southampton and Exeter.
This needs more research. If it applies only to new airlines it's not much use; if it applies to an airline new at an airport it looks quite good.
Edit: here's more from Forbes, that helps to answer my point.
EU Sets Rules for State Aid to Airports
The European Commission on Tuesday approved long-awaited rules governing state aid to regional airports, putting a ceiling on the percentage of costs that can be covered by public money in the establishment of carriers' new routes.
The commission, executive arm of the European Union, also said it would soon adapt rules for allocating takeoff and lading slots, computer reservation systems and baggage-handling services in a bid to boost competition among operators.
Under the new regulations, airports with fewer than 5 million passengers a year are eligible for public money. State aid must be restricted to between 30 and 50 percent of an airline's costs of starting up a new route, typically for up to three years.
Airports on the fringes of the EU or in poorer areas - where gross domestic product per capita is less than 75 percent of the EU average - can get state aid for up to five years.