EU opens in-depth investigations into State aid to Romanian air transport sector

The Commission is particularly concerned that the agreements concluded between Timisoara airport and Wizz Air could procure the latter an unfair economic advantage over its competitors. Separately, the Commission approved investment aid mostly to improve access to an airport in Wales and to promote the use of rail and bus to and from the airport in Italy's Friuli Venezia Giulia region having agreed both subsidies were justified and limited in size.

Commission Vice-president in charge of competition policy Joaquín Almunia said: "The Commission has a duty to investigate when it believes public authorities may be granting subsidies that distort the conditions of fair competition. The rules allow subsidies to compensate for services of general interest and, under certain conditions, to improve access infrastructure or to help start up services at regional airports. They do not allow subsidies to cover operating losses on a continued basis."

Regional airports in Romania

As regards the support scheme for investments in regional airports in Romania, the Commission doubts whether the public financing meets a clearly defined objective of general interest, given the apparent oversupply of airport services in Romania. In addition, the Commission needs to assess whether the upgraded infrastructure is necessary and proportional, in particular with a view to the limited activity of the airports. The initial investigation shows that Romania's regional airports are generally loss-making and that their operating losses are covered by the State on a yearly basis. EU rules allow for aid to start up services at regional airports or to cover for services of general economic interest. They do not allow for covering operating losses on a continued basis.

Timisoara airport

As regards Timisoara airport, the Commission also needs to verify whether the annual subsidies granted to the airport only serve to reduce the airport operator's current expenditures. In the absence of a general economic interest purpose, this would be incompatible with EU rules as it would provide an unfair advantage to the beneficiary with regard to its competitors, who have to operate without aid. The Commission will also further investigate the contractual relations between Timisoara airport and Wizz Air, namely a marketing agreement signed in 2008 and the non-payment of airport charges amounting to €2.6 million as well as additional rebates of 72 to 85 % on all airport charges for large aircraft (i. e. aircraft above 70 tons maximum take off weight).

The Commission is concerned such preferential treatment may have the effect of forcing out of the market the only competitor of Wizz Air on some routes.

The opening of the in-depth State aid investigations gives the Romanian government and interested third parties an opportunity to comment on the measures under assessment. It does not prejudge the final outcome of the investigation