The European Commission has released guidance to enable further public funding of airports and airlines during the COVID-19 pandemic (this also covers the UK during the Brexit transition period).
The COVID-19 outbreak is having a major impact on European transport and mobility. It caused massive negative demand shocks due to the necessary containment measures along with voluntary efforts of individuals to practice social distancing, minimize commuting and avoid travel. These have led to supply chain disruptions, steep reductions in tourism, and overall reduced mobility.
EU State aid rules enable Member States to support companies affected by the outbreak, including those in the transport sector. The aim is to safeguard and restore the connectivity underpinning the free movement of people and goods while keeping in mind that a competitive internal market is our best asset to bounce back strongly afterwards.
Any public intervention in the transport sector should be designed to avoid undue distortions of competition during and after the crisis and to preserve efficient transport ecosystems. To this end, all undertakings, including transport operators, related services providers and infrastructure managers, should have access to the necessary support to protect and restore connectivity for European citizens and businesses – including the integrity and good functioning of the supply chains. In the interest of the EU economy and consumers, Member States should design their measures on a non-discriminatory basis and in a way which preserves the pre-crisis market structures and paves the way for a speedy economic recovery. A reduction in the number of economic actors in the internal market post-crisis may have a negative impact on competition in the transport markets, on connectivity, quality of service and prices...more
