06.09.05
Regional airports in the European Union, often used by low-fare carriers such as Ryanair, face limits but have been granted certain freedoms in order to help them attract business under new rules approved by the EU Commission today.
The rules, first proposed in February, are meant to encourage development of smaller airports in the EU, some of which have flourished as low-cost airlines grow and start new routes. The Commission said it wanted to encourage this growth and the mobility this generates while preserving fairness and compliance with EU state aid rules.
The guidelines allow state aid to be used for establishing new routes at regional airports with fewer than 5 million passengers a year. In most cases the aid can cover 30% of the additional start-up costs for routes that will become economically viable, a Commission spokesman said. The aid may be given for up to 3 years or, if the airport is in a less developed region, up to 5 years.
The guidelines were developed after the Commission ordered Ryanair to repay about €4m (£2.7m) in aid to the Belgian regional government of Wallonia, which had offered the airline cheap rates at the area's Charleroi airport, covering 90% of its costs for 15 years.
A Commission spokesman said today that the EU executive was still following that case closely. Ryanair is appealing the order.
