Europe

EC INVESTIGATES STATE AID AT REGIONAL AIRPORTS

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EC INVESTIGATES STATE AID AT REGIONAL AIRPORTS

The European Commission is investigating improper state aid at regional airports in the 27 member states. Last month it announced it has launched in-depth investigations at Marseille and Frankfurt Hahn.

The EC is analyzing public support received by MRS for its low-cost terminal "mp2" and fee reductions awarded to airlines, both low-cost and incumbent companies. Between 2005 and 2007, the operator of the MRS (the local Chamber of Commerce) received a subsidy of €7.6 million ($10.9 million) for the construction of mp2, which the EC doubts was necessary to carry out the investment and is investigating whether the aid was proportionate to the objectives pursued.

At HHN airport, the EC is investigating whether a series of loans and refinancing of loans granted to the airport by publicly owned bodies were granted under market conditions.