NDLI: State aid to low-cost airlines

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State aid to low-cost airlines

Content Provider	Scilit
Author	Malavolti, Estelle Marty, Frédéric
Copyright Year	2020
Description	Both of the authorities responsible for applying competition rules and the regulatory authorities for public accounts are frequently required to focus on the situation surrounding secondary airports and the agreements that can tie in low-cost carriers (LCCs). Some agreements are criticised as being excessively favourable to the companies in question. On this basis, there are two emerging issues. This first issue stems from the competitive effects of these agreements. Subsidies made available to LCCs can be considered public aid. The latter should be notified to ensure compliance with internal market operational rules. Within the framework of the more economic approach implemented by the European Commission, public aid can be authorised if it addresses a failure identified in the market. Therefore, aid in itself is not prohibited, but it must have been notified and must not distort competition between airline carriers. Since the early 2000s, the European Commission has established a number of formal procedures (European Commission, 2005) that have resulted in the annulment of many agreements. These formal procedures are reflected in the reclassification of potential support mechanisms to public aid and an injunction requiring LCCs to repay funds that they received to the airport infrastructure manager.$ ^{1}$ Book Name: Air Transport and Regional Development Policies
Related Links	https://api.taylorfrancis.com/content/chapters/edit/download?identifierName=doi&identifierValue=10.4324/9781003092070-11&type=chapterpdf
Ending Page	226
Page Count	21
Starting Page	206
DOI	10.4324/9781003092070-11
Language	English
Publisher	Informa UK Limited
Publisher Date	2020-11-28
Access Restriction	Open
Subject Keyword	Book Name: Air Transport and Regional Development Policies Transportation Airport Aeronautical Charges Airline Carrier Competition Infrastructure
Content Type	Text
Resource Type	Chapter

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