IP/06/627
Brussels, 16 May 2006
The European Commission approves a system for start-up aid for transport services from regional airports in the UK The European Commission today found compatible with the common market the “Air route development funds” measure, whereby regional authorities in the United Kingdom may put in place a common system for granting start up aid for new aviation routes to and from these regions.
Regional authorities in Wales, North East and North West England will grant start-up aid for new services departing from airports[1] in their regions. The aid can take the form of the provision of route specific marketing support related to the launch and ongoing promotion of the route and/or discounts on aeronautical charges levied by airport operators to airlines. The aid is in line with previous Commission decisions in this area, particularly the Charleroi/Ryanair decision: it is available to all operators in a transparent and non-discriminatory manner, it is limited to three years and marketing aid has to be route specific and paid out on the basis of a business plan.
The scheme has been assessed and found compatible on the basis of the “Community guidelines on financing of airports and start-up aid to airlines departing from regional airports”[2] that the Commission has adopted in September 2005.
The primary objective of the scheme is to facilitate regional development through access to air transport services which are important for the economic and social development of these regions. The measure is designed to encourage the private sector to invest in new air services by sharing the risk between airport and airline and regional government.
It is expected that the total budget of the three funds operating each over a five year period in the three regions will amount to GBP 25 million (€ 36 million).
[1] Manchester Airport in the North West of England with 20 million passenger per annum is specifically excluded from the scope of the scheme
[2] The guidelines entered into force following their publication in the Official Journal of the European Union on 9 December 2005 (OJ C312/1 of 9.12.2005)
