Brussels, 4 June 2024
The European Commission has approved, under EU State aid rules, a €30 million Italian scheme to support the establishment of new air passenger connections from and to the airports in the Sardinia region.
The purpose of the scheme is to improve the mobility of the residents of Sardinia, which qualifies as a remote region within the meaning of EU State aid rules, as well as the connectivity between Sardinia and other regions in Europe. With a view to those objectives, the scheme also aims at increasing air passenger traffic to and from Sardinia outside of the tourist season, when connections are scarce.
Under the scheme, which will have a maximum duration of three consecutive years, the aid will take the form of direct grants. The scheme is open to airlines establishing new connections between any of the three airports in Sardinia and a different airport in or outside the European Common Aviation Area. The aid will cover 50% of the cost of airport charges incurred by each beneficiary for each newly established air route.
The Commission assessed the scheme under EU State aid rules, in particular Article 107(3)(c) of the Treaty on the Functioning of the European Union, which allows Member States to support the development of certain economic activities or of certain economic areas under certain conditions. In this context, the Commission also applied the Guidelines on State aid to airports and airlines, which provides guidance on the compatibility with the internal market of aid to airlines to start a new air route with the aim to increase the connectivity of a region.
The Commission found that the scheme is necessary and appropriate to support new air passenger connections in a region where air travel is essential to ensure the mobility of its residents. Moreover, the Commission found that the scheme is necessary, as potential beneficiaries would not carry out the relevant investments without public support. Finally, the Commission concluded that the scheme is proportionate as the aid is limited to the minimum necessary, and will have a limited impact on competition and trade in the EU.
On this basis, the Commission approved the Italian scheme under EU State aid rules.
The non-confidential version of today’s decision will be made available under case number SA.111720 in the State aid register on the Commission’s competition website once any confidentiality issues have been resolved.
Source – EU Commission