State aid — Guidelines on aid to airports and airlines
Communication from the Commission — Guidelines on State aid to airports and airlines
It sets out general principles and compatibility conditions for state aid to airports and airlines, which aim at ensuring good connections between regions and the mobility of EU citizens, while minimising distortions of competition in the EU’s single market.They have applied since 4 April 2014.
KEY POINTS
The guidelines introduced a new regulatory framework under which operating aid to airports is compatible with the single market for a transitional period of 10 years.
They also set out the conditions under which investment aid to airports as well as to airlines is compatible with the single market.
They were drawn up as part of the state aid modernisation programme.
The main features of the guidelines include:
setting clear rules for assessing airport-airline agreements, to ensure that they are aid-free and contribute to the profitability of the airports concerned;
permitting State aid for investments in airport infrastructure if there is a genuine transport need. The maximum permissible aid amounts are defined based on the size of an airport, in order to ensure the right mix between public and private investment. The possibilities to grant aid are therefore higher for smaller airports than for larger ones;
allowing operating aid to regional airports (with fewer than 3 million passengers a year) for a transitional period of 10 years under certain conditions, in order to give airports time to adjust their business model and to become profitable at the end of the transitional period in 2024;
providing for a higher aid intensity for airports with an annual passenger traffic of below 700,000 which may face increased difficulties in achieving full cost coverage;
permitting start-up aid to airlines for opening new routes from airports with up to 3 million passengers a year for a maximum of 3 years. The airlines need to either provide a business plan showing the viability of the route in the future or to commit to continuing to operate the route after the period covered by the aid.
In 2018, because it decided to postpone the evaluation of the specific regime for airports with up to 700,000 passengers per year, the European Commission issued a communication extending the existing rules to provide for continuity and legal certainty in the treatment of this type of State aid until 3 April 2024. This therefore aligns the transitional period for the application of the rules for smaller airports with that applicable for airports with more than 700,000 passengers per year.
DOCUMENTS
Communication from the Commission — Guidelines on State aid to airports and airlines (OJ C 99, 4.4.2014, pp. 3-34)
Successive amendments to the communication have been incorporated into the original document. This consolidated version is of documentary value only.
Communication from the Commission concerning the prolongation of the specific regime for operating aid for airports with up to 700,000 passengers per annum provided for in the Guidelines on State aid to airports and airlines (OJ C 456, 18.12.2018, pp. 27-28)
Consolidated version of the Treaty on the Functioning of the European Union — Part Three — Union policies and internal actions — Title VII — Common rules on competition, taxation and approximation of laws — Chapter 1 — Rules on competition — Section 2 — Aids granted by States — Article 107 (ex Article 87 TEC) (OJ C 202, 7.6.2016, pp. 91-92)
Regulation (EC) No 1008/2008 of the European Parliament and of the Council of 24 September 2008 on common rules for the operation of air services in the Community (Recast) (OJ L 293, 31.10.2008, pp. 3-20)
A common framework for airport charges
Directive 2009/12/EC on airport charges
This directive aims to create a common system for regulating airport charges* at EU airports.
Application
The rules apply to any airport:
located in a territory subject to the EU treaties whose annual commercial traffic is over five million passenger movements;
with the highest number of passengers in an EU country.
They do not apply to charges:
collected for the remuneration of en route* and terminal air navigation services in accordance with Regulation (EU) 2019/317;
collected for the remuneration of groundhandling services referred to in the Annex to Directive 96/67/EC (see summary);
levied for the funding of assistance to disabled passengers and passengers with reduced mobility referred to in Regulation 1107/2006/EC (see summary).
Non-discrimination
Airport charges must not discriminate between airport users*. However, charges may be modulated for issues of:
general and public interest;
environmental interest.
Airport network
A managing body of an airport network may decide to introduce a charging system to cover the entire network in a transparent manner.
Common charging systems
An airport managing body must be authorised to apply a common and transparent charging system for airports serving the same urban community or conurbation.
Consultation and remedy
Airport users or the representatives of associations of users must be consulted regularly with respect to:
the operation of the system of airport charges;
the level of airport charges and, as appropriate;
the quality of service provided.
Consultation must take place at least once a year, unless:
agreed otherwise in the latest consultation;
an agreement between the airport managing body and the airport users states otherwise;
the EU country decides to request more frequent consultations.
Transparency requirements
Airport users or representatives of airport users must be kept informed about the components serving as a basis for determining the level of charges. This information includes:
the various services and infrastructure provided in return for the airport charge levied;
the methodology used for setting airport charges;
the revenue of the different charges;
any financing from public authorities of the facilities and services which airport charges relate to;
forecasts of the situation at the airport as regards charges.
Airport users must submit the following information to the airport managing body before every consultation:
forecasts as regards traffic and use of their fleet;
their development projects and their requirements at the airport concerned.
New infrastructure
Airport managing bodies shall consult with airport users before plans for new infrastructure projects are finalised.
Differentiation of services
The difference in quality and scope of services decided by an airport managing body may result in a variation in airport charges.
Independent supervisory authority
EU countries must establish an independent supervisory authority.
This authority must ensure the measures taken to comply with this directive are correctly applied. It may delegate tasks to other independent supervisory authorities.
KEY TERMS
Airport charge: a levy collected for the benefit of the airport managing body and paid by the airport users for the use of facilities and services, which are exclusively provided by the airport managing body and which are related to landing, take-off, lighting and parking of aircraft, and processing of passengers and freight.
En route: the part of flight from the end of the take-off and initial climb phase to the commencement of the approach and landing phase.
Airport users: any natural or legal person responsible for the carriage of passengers, mail and/or freight by air to or from the airport concerned.
Managing body: a body which, in conjunction with other activities or not as the case may be, has as its objective under national laws, regulations or contracts the administration and management of the airport or airport network infrastructures and the coordination and control of the activities of the different operators present in the airports or airport network concerned.
DOCUMENT
Directive 2009/12/EC of the European Parliament and of the Council of 11 March 2009 on airport charges (OJ L 70, 14.3.2009, pp. 11-16)It has applied since 15 March 2009 and had to become law in the EU countries by 15 March 2011.
Commission Implementing Regulation (EU) 2019/317 of 11 February 2019 laying down a performance and charging scheme in the single European sky and repealing Implementing Regulations (EU) No 390/2013 and (EU) No 391/2013 (OJ L 56, 25.2.2019, pp. 1-67)
Regulation (EC) No 1107/2006 of the European Parliament and of the Council of 5 July 2006 concerning the rights of disabled persons and persons with reduced mobility when travelling by air (OJ L 204, 26.7.2006, pp. 1-9)
Successive amendments to Regulation (EC) No 1107/2006 have been incorporated into the original text. This consolidated version is of documentary value only.
Council Directive 96/67/EC of 15 October 1996 on access to the groundhandling market at Community airports (OJ L 272, 25.10.1996, pp. 36-45)
Ground handling at Community airports
Directive 96/67/EC on access to the groundhandling market at Community airports
The ground-handling services at European Union (EU) airports where access is being granted include those that enable airlines to carry out air-transport activities (taxi guidance, cleaning, refuelling, baggage services, etc.).
The directive applies to all EU airports open to commercial traffic whose annual traffic is not less than 2 million passenger movements or 50,000 tonnes of cargo.It has applied since 14 November 1996 and had to become law in the EU countries by 25 October 1997.
KEY POINTS
The managing body of an airport*, the airport user* or the supplier of ground-handling services* must, under the supervision of the designated auditor, rigorously separate the accounts of their ground-handling activities from the accounts of their other activities.
In parallel, the EU country:
must set up, for each of the airports concerned, a committee of representatives of airport users to represent users’ interests;
may require that suppliers of ground-handling services be established within the EU and may limit the number of suppliers authorised to provide categories of ground-handling services such as baggage handling, ramp handling, fuel and oil handling, cargo and mail handling;
may reduce to two the number of users able to provide self-handling for ground-handling services such as baggage handling, ramp handling, fuel and oil handling, cargo and mail handling;
may benefit from exemptions (limited in time) where at an airport specific constraints of available space or capacity make it impossible to open up the market and/or implement self-handling;
may under certain conditions reserve for one body the management of the centralised infrastructures which cannot be divided up or the cost of which does not allow for duplication. In parallel, subject to certain conditions, EU countries may grant exemptions to airports where specific constraints make it impossible to open up the market and/or implement self-handling to the degree provided for in the directive;
may oblige the supplier chosen at an airport to also operate on islands that are part of the territory of the EU country;
may subject the activity of suppliers of ground-handling services to the requirement to obtain a licence issued by a public authority that is independent of the airport in order to guarantee safety, security, environmental protection and compliance with social legislation;
must take the necessary measures to ensure that suppliers of ground-handling services and airport users wishing to self-handle have access to airport installations – where access to these installations is subject to a fee, the fee shall be determined according to relevant, objective, transparent and non-discriminatory criteria;
may adopt, subject to the other provisions of EU law, the necessary measures to ensure the protection of workers’ rights and respect for the environment.
BACKGROUND
This directive provided for a gradual implementation schedule according to whether self-handling services or third-party handling services were involved. From 1 January 2001, the directive applies to any airport located on the territory of a EU country at which the annual traffic is not less than 2 million passenger movements or 50,000 tonnes of cargo.
Ground-handling: covers a wide variety of services required by airlines in order to operate flights. These services include areas such as maintenance, fuel and freight handling. Ground-handling also covers services like passenger check-in, catering, baggage handling and transport within the airport itself.
Managing body of the airport: the body responsible for administrating and managing airport infrastructures and supervising and coordinating the activities carried out by different operators.
Airport user: natural or legal person carrying passengers, mail or cargo by air.
Supplier of ground-handling services: natural or legal person providing third parties with one or more categories of ground-handling services.
DOCUMENTS
Council Directive 96/67/EC of 15 October 1996 on access to the groundhandling market at Community airports (OJ L 272, 25.10.1996, pp. 36-45)
Successive amendments to Council Directive 96/67/EC have been incorporated in the original text. This consolidated version is of documentary value only.
EU airport noise
With increasing air traffic in prospect, the European Union has agreed new rules on how authorities take decisions setting noise-related operating restrictions at EU airports to limit nuisance from aircraft noise.
Regulation (EU) No 598/2014 of the European Parliament and of the Council of 16 April 2014 on the establishment of rules and procedures with regard to the introduction of noise-related operating restrictions at Union airports within a balanced approach and repealing Directive 2002/30/EC.
Regulation (EU) No 598/2014 aims to improve the noise environment around EU airports in order to ensure greater compatibility between aviation activities and residential areas, in particular in the case of night flights. The rules are based on the principles of the Balanced approach to noise management agreed by the International Civil Aviation Organisation (ICAO), the United Nations’ body dealing with international civil aviation.
An operating restriction can take various forms, like setting a noise or a movement limit, introducing a non-addition rule (no additional movements or operations in general, or from a specific type of aircraft) or adopting a curfew for a period of night.
Scope
The rules apply only to larger airports with more than 50 000 civil aircraft movements per year. They cover civilian aircraft but exclude military, customs and police movements. The setting of specific noise thresholds, however, remains the preserve of national and local authorities.
Competent authorities
EU countries each appoint competent authorities which take charge of the procedures to be followed for the adoption of operating restrictions. These must be independent of any party that might have a conflict of interest.
Right of review
Before introducing operating restrictions, competent authorities have to give 6 months’ notice to the other Member States, the European Commission and interested parties. The Commission may, within 3 months of receiving the notice, examine the case. If it considers the procedures do not respect the rules, it notifies the competent authority which must, in turn, inform it of the action it intends to take.
Health aspects
EU legislation regarding the impacts of noise on human health (Directive 2002/49/EC) must be taken into account when any decision is taken on noise reduction objectives.
Noise performance information
Decisions on operating restrictions must be taken based on individual aircraft noise performance data provided by the operators. This information will be centralised in a database and made available to competent authorities, airlines, air navigation service providers, airports and airport users.
Assessment of noise and information for residents
Competent authorities must ensure the regular monitoring of noise levels at airports for which they are responsible. If from their evaluation it emerges that operation restrictions could be a cost-effective measure to mitigate noise, a consultation process needs to be organised rapidly and interested parties have 3 months to submit their views before the adoption of restrictions.
Authorities must also ensure that information on operating restrictions is promptly and freely available to local residents and local authorities.
Phasing-out of noisy aircraft
Noise mitigation measures may include the withdrawal of, or extra restrictions upon, the noisier aircraft among those permitted by ICAO rules. Authorities will decide on the annual rate for reducing the number of movements by such aircraft for each operator at a given airport, up to a maximum of 25 %.
Regulation (EU) No 598/2014 repeals Directive 2002/30/EC with effect from 13 June 2016.
REFERENCES
Regulation (EU) No 598/2014
Directive 2002/49/EC of the European Parliament and of the Council of 25 June 2002 relating to the assessment and management of environmental noise (Official Journal L 189 of 18 July 2002).