AEA Rejects European Commission’s State Aid Rules

The Association of European Airlines (AEA) has claimed that the European Commission’s new rules on state aid for airports and airlines will lead to a misuse of public resources. “The current rules, while lacking in transparency, should nonetheless have regulated an area of clear market distortion; unfortunately they were never adequately implemented and many outstanding cases have so far gone unheard. AEA believes that the new guidelines will not serve industry, passengers and taxpayers any better,” the body said in a statement. “AEA strongly disagrees with the provision in the latest formulation that permits operating aid – potentially very distortive to competition – for a transitional period of 10 years… An airport, building up its business route by route, should be able to demonstrate its viability within a much shorter time span.” It also argued that unprofitable airports should not be able to “whitewash their past and continue to benefit from public funding”, claiming that would also lead to market distortion. 

TAGS: Europe
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