Kerosene Subsidies

The Commission is considering taking legal action against illegal fuel subsidies to aircraft using Munich airport.

Sketch of some documents (default image for news

[mailchimp_signup][/mailchimp_signup]The airport, which is fully state-owned, has been offering ‘marketing subsidies’ to a number of airlines since 1994, at a rate of up to €25 per 1000 litres of kerosene. The airport told the Frankfurter Allgemeine Zeitung newspaper that the subsidies were essential to stop airlines leaving Munich for cheaper airports. It says Munich’s location far from a port and the lack of a pipeline serving the city meant kerosene prices were higher than at other German airports.

This news story is taken from the November 2007 edition of T&E Bulletin.