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 is the most carbon intensive transport mode, yet European member states exempt airlines from fuel tax and airline tickets completely from VAT. Now, with its aviation state aid guidelines, the Commission has decided to open the floodgates and expand operating aid to airports in an effort to boost their turnover.
On 3 July 2013 the European Commission published revised draft guidelines on State aid to airports and airlines. The guidelines need to be urgently reconsidered as they risk further distorting competition, wasting scare public resources and expanding billions of euros in climate harmful subsidies.