EU plans to cut financial aid for larger airports - CILT(UK)
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EU plans to cut financial aid for larger airports

04 July 2013/Categories: Industry News


The European Commission has suggested that larger airports throughout the EU may lose out on financial help in the future.


EU competition commissioner Joaquin Almunia believes that removing state aid for aviation facilities that accommodate more than five million passengers a year would reduce the burden on the taxpayer and also stimulate greater competition among airports.


The proposed reforms would encourage "fair competition regardless of the business model - from flag carriers to low-cost airlines and from regional airports to major hubs", Mr Almunia stated.


EU chiefs said financial support that is currently used to help budget airlines launch new routes could be scaled back too.


This will add more fuel to the airport expansion debate in the UK, as some aviation experts have urged the government-backed Airports Commission to catalyse the growth of smaller sites in the UK, while others would prefer one or two huge hub airports to be built.


Judging by the European Commission's latest announcement, it would certainly appear to favour the former idea.

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