Press Release

Issued by European Business Aviation Association.

July 4, 2013

In response to the European Commission's publication of new guidelines on state aid rules for the public financing of airports and airlines, the European Business Aviation Association (EBAA) and European Regional Aerodromes Community (ERAC) raise several key concerns and call on member states to carefully evaluate the consequences of the application of the guidelines and how it would impact their own economic appeal.

The new guidelines force member states as well as regional and local authorities to comply with more restrictive rules, limiting their ability to invest in the development of airport infrastructure (investment aid) as well as in the financing of daily operations of smaller airports (operating aid). The rational is based on a perception of airports as mere commercial entities that must economically “break even” within the framework of their direct activities. This perception, however, is a grave mischaracterisation of the role of airports, wholly discounting the important public service they offer to local and regional communities. Within the scope of the proposal for instance, regional airports with more than 200,000 passengers per year would no longer be able to receive public operating aid.

“According to the well-established principle of subsidiarity, as it is commonly applied for land-use planning, the decision of maintaining, or developing an airport should be left to the local community,” says Thomas Mayer, ERAC secretary general. “Indeed, regional airports – their positive effects on the locality they serve – should not be hijacked by the combat – as legitimate as it may be – against distortions of competition amongst carriers.”

Both associations recall that annually, business aviation connects upwards of 100,000 city-pairs. Combined with the activities of regional and other non-scheduled operators, the number of city pairs served across Europe can tally 150,000. This flexibility – which allows air transport to pick up and dispatch individuals closest to their final destinations – would be jeopardised if the proposals set forth by the Commission were to be implemented.

“The commission must be coherent with its transport policy,” argues Fabio Gamba, ceo of the European Business Aviation Association. “It cannot on one hand limit airport access at principle hubs to primarily non-scheduled and regional carriers via its unbalanced policy of slot distribution, and on the other hand put into question the very existence of regional airports. By so doing, the commission unravels Europe's economic fabric and contradicts its policy of social cohesion.”

Both associations invite legislators not to fight the wrong battle, and invite stakeholders and member states to firmly express their opposition to an initiative that puts at risk hundreds of aerodromes and airports across Europe, a source of wealth and great value, thanks to its employment opportunities and unique know-how.