Evaluation Support Study for the Revision of the Guidelines on State Aid to Airports and Airlines

We are pleased to announce that today the European Commission has published the final report “Evaluation Support Study for the Revision of the Guidelines on State Aid to Airports and Airlines”, prepared by a consortium comprising Lear as the Study leader, and partners Deutsches Institut für Wirtschaftsforschung e. V. (“DIW”) and EY Economic and Policy Advisory Services SRL (“EY”).
The Guidelines on State Aid to Airports and Airlines (“Aviation Guidelines”) issued in 2014 set out the criteria under which certain State support measures granted to airlines and to airports are compatible with the single market.
The objective of this Study is to provide scientific evidence to underpin the revision of the Aviation Guidelines in light of evolving market dynamics, of the impact of COVID-19, and of the challenges of the green transition in the European aviation sector. In particular, the Study helps answering the questions whether and to what extent operating aid to regional airports (i.e. airports with traffic up to 3 million passenger per year) should be extended beyond April 2027, and whether start-up aid to airlines is still needed to remedy connectivity gaps also in light of the existing options of public compensation for Services of General Economic Interest (“SGEI”); whether the catchment area definition is still adequate to establish the compatibility of aid; whether the Aviation Guidelines should include new rules on State aid to promote the alignment of the aviation sector with Green Deal objectives, or whether the existing rules under the Climate, Energy and Environmental Aid Guidelines (“CEEAG”) and the Framework for State aid for Research and Development and Innovation (“RDI guidelines”) sufficiently support these goals; and whether and how green conditionality of State aid measures could be ensured.
The Study finds limited evidence in the literature applicable to regional airports and provides fresh evidence through consultations of key stakeholders of the aviation industry and qualitative and quantitative data analysis. The findings show that profitability remains a structural challenge for regional airports and that size is critical to break even. Regional airports contribute positively to connectivity and local economic development, but they tend to compete with each other when located in close proximity, posing challenges to the compatibility of State aid.
The project team was managed by Lear’s Partner Salvatore Nava and Senior Consultant Rossella Mossucca, and comprised Lukas Alijošius (EY), Thomas Bianchi (Lear), Mohamed Lamine Dahmani (Lear), Tomaso Duso (DIW), Nada Gajić (Lear), Morgane Guignard (DIW), Pierre Hausemer (EY), Jo Seldeslachts (DIW), Gilles van Cappellen (EY), as well as external consultants Francesca Delfini (UniBO), Antonio Marsi (Pompeu Fabra University) and Audrey Thenot (Potsdam Institute for Climate Impact Research).