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State aid for airports: money for nothing and your runways for free

Sketch of a book (default image for publications

In mid April 2014, the European Commission opened a consultation on disputed aid to 23 regional airports in relation to the newly revised state aid guidelines for airports and airlines which came into effect at the beginning of the month. T&E believes that decisions that will be taken on state aid under the new guidelines risk further distorting competition in an already heavily subsidised sector, wasting scarce public resources and expanding billions of euros in climate harmful subsidies that will generate more CO2 than the original emissions trading system intended to save. Transport & Environment believes that state aid can only be justified for select small airports in remote areas for which other transport is not a viable option. You can download our consultation response below.

Aviation emissions trading slashed by 75% until 2017

Long-haul flights to and from Europe will continue to be excluded from the EU emissions trading system (ETS) after MEPs voted last month to accept a compromise brokered with EU governments. The agreement means that, until 2017, only flights between EU airports will be regulated – a 75% cut in emissions covered compared with the original ETS.

Social democrats could overturn vote to dismantle aviation emissions trading

MEPs from the socialist S&D group are still deciding on next week’s vote to only regulate CO2 emissions of intra-European flights which, T&E argues, effectively dismantles the aviation emissions trading system (ETS). The Parliament’s environment committee will consider the trilogue deal, which reflects EU governments’ giving in to pressure from third countries, the aviation industry and Airbus.

People flying Ryanair should pay for their own tickets

Last week saw Europe extend its dirtiest subsidy, the one that makes ultra-cheap air tickets possible, by at least another decade. That’s the simplest way to sum up new rules for state aid to regional airports and airlines. The text itself is, as usual, almost impossible to read for lay people, so in this piece I will try to paint the rules and their consequences as simply as possible.

State subsidies for airports set to soar

State subsidies for regional airports and airlines serving them – mainly the low-cost airlines – will be allowed to continue for at least another 10 years, according to the Commission’s finalised guidelines on state aid for airports. The revised guidelines, which cannot now be challenged by MEPs, are ostensibly aimed at streamlining and tightening state aid for airports.

Member states should follow MEPs and back airspace emissions proposal

MEPs on the Environment Committee today stood up to political pressure from member states and industry by voting to endorse the European Commission’s proposal for an aviation emissions trading system covering all of Europe’s airspace. Although the proposal regulates only 35% of airline emissions compared to the original EU ETS, it crucially captures a portion of long-haul flights – where most of aviation’s greenhouse gases originate.

Citizens, Aviation and Competition: State Aid for Airports and Airlines

When? 
Monday, September 16, 2013 - 11:00 to 15:00
Where? 
Conference Room, Mundo-B
Rue d’Edimbourg 26
1050 Brussels
Belgium

On 3 July, the Commission released draft new guidelines on State aid to the aviation industry. Citizens have until 25 September to comment. T&E estimate that about €3bn a year goes to the aviation industry across the EU and the Airports Council International (ACI) have estimated that airports under-recover about €4bn in airport costs a year.

Proposal on reducing aid to aviation leaves distortions

The Commission has published proposals aimed at reducing the amount of taxpayers’ money that goes to airports and airlines. However, the fine print of what is initially a consultation means small airports will continue to receive massive subsidies that often make their way to low-fares airlines, even when such subsidies distort competition between airlines. The consultation is important, because when it is complete the Commission can implement its preferred solution without consulting MEPs.

Airlines' call for global emissions deal not convincing

The International Air Transport Association (IATA), a trade body comprising 240 airlines worldwide, today finally acknowledged the need for a global market–based measure to reduce aviation's contribution to climate change. IATA called on their airline members to encourage their governments to agree at this year’s International Civil Aviation Organisation (ICAO) Assembly on a global carbon offsetting measure to take effect in 2020.

America must lead global fight against aviation carbon pollution

International aviation is on course for a rough landing in our warming world. Air travel is growing rapidly -- and so are aviation emissions, which are already responsible for 5 percent of the warming effect of global greenhouse gas emissions.

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