THE SCOPE OF STATE AID AND PUBLIC SERVICE OBLIGATION FOR AIRPORTS AND AIR CARRIERS IN THE LIGHT OF EUROPEAN LAW

Abstract

Public aid is the kind of advantage granted directly or indirectly for private companies from State resources. The European Commission prerogative to control the transfer of public resources by the public authorities (national or local) for the benefit of private undertakings, as a general rule, there is an obligation of notification, as provided for in article 108 (3) of the Treaty on the Functioning of the European Union (TFEU). It should be noted in the beginning that State aid given to undertakings conducting economic activity is, in principle, incompatible with the European Union’ law, as provided for in article. 107 (1) of the TFEU. There are certain situations that the granting of public funds will not constitute “public aid” within the meaning of article 107 of the TFEU and, therefore, will not violate European rules in this field. One of them are activities related to the exercise of the prerogatives of the public authority (security, safety, customs, air traffic control). The other is related to the exercise of services in general economic interest. This could be an example of public service obligation (PSO). This service can be applied in the light of the provisions of European law on two types of action on air routes, and on airport managing body. The imposition of a PSO to the specified route is the support given by the State to the outermost regions that due to their unfavourable geographical position cannot fully develop economically, and no carrier had not been interested in performing air services to that region due to the lack of cost effectiveness. Some activities at the airport may be considered as activities of general economic interest.

Keywords

• Air Carriers
• Airports
• European Law

References

1. References Community guidelines on financing of airports and start-up aid to airlines departing from regional airports, OJ EC, C 312, 9.12.2005.
2. Case C-280/00, judgement of July 24, 2003, Altmark Trans and Regierungspresidium Magdeburg, Court Reports 2003, p.I-7747.
3. Commission Regulation (EC) No 794/2004 of 21 April 2004 implementing Council Regulation (EC)No 659/1999 laying down detailed rules for the application of Article 113 of the TFEU, OJ UE, L 140, 30.04.2004, p.1-134.
4. Case C-343/95, judgement of March 18, 1997, Calě & Figli versus Servizi Ecologici Porto di Genova (Court Reports 1997, pp. I-1547).
5. European Commission, Communication from the Commission to the European Parliament and the Council - The repercussions of the terrorist attacks in the United States on the air transport industry, COM 574 (2001) final, 10.10.2001, par.27.
6. European Commission, Press release, State aid: Commission finds that public interventions at Berlin Schönefeld Airport did not involve state aid, IP/14/173, Brussels, 20.02.2014. European Commission, Press release, IP/14/138, Brussels, 11.02.2014.
7. Joined cases C-159/91 and C-160/91, Court Reports 1993, p.I-637).
8. OJ UE, L 293, 31.10.2008, pp. 3—20.

9. The Treaty on the Functioning of the European Union (TFEU) was signed on December 13, 2007 in Lisbon (hence the name of the Treaty of Lisbon), and came into force on December 1, 2009 (OJ EU, C 306, 17.12.2007, p.1-271).
10. The system of Europe’s classification into regions is existing since the 1970s. of the 20th century. The legal basis for this Division is in accordance with Commission Regulation No 1059/2003 of the European Parliament and of the Council of 26 May 2003 on the establishment of a common classification of territorial units for statistics (NUTS) (OJ L 154, 21.06.2003, p.1-41).
11. U. Zawatka-Gerlach, Berlin und Brandenburg fordern Einsicht in Antragspapiere, Der Tagesspiegel, 1.06.2015, Web edition: http://www.tagesspiegel.de/berlin/eu-pruefverfahren-zum-ber-berlin-und-brandenburg-fordern-einsicht-in-antragspapiere/11849842.html, access 20.09.2015.