How to Support the Development of New Routes at an Airport: Commercial Incentives and Compatible Aids in Favour of Airlines under EU Law Annabelle Lepièce1 Introduction; 1. General Principles of State Aid; 1.1. The notion of State aid; 1.2. The procedural obligations; 1.3. The relevant EU framework in the air transport sector; 2. Incentives Granted by Airports and Public Authorities for the Development of Routes; 2.1. Commercial incentives to airlines under the private operator principle; 2.2. Non-selective rebates on airport charges; 2.3. The remuneration for publicity on an airline’s website; 2.4. The purchase of flight tickets by a public company/authority; 3. Regional Schemes to Develop Air Traffic; 4. Aids Authorised under EU Law; 4.1. Start-up aids for new routes; 4.2. Public Service Obligations in the air transport sector; 4.3. De minimis aid; 4.4. The grant of social aid; Conclusion. INTRODUCTION Following the liberalisation of air transport, the outbreak of low costs airlines and the privatisation of public-owned airports, the air transport sector has tremendously evolved these past two decades. Nowadays, commercial incentives from public airports and authorities to airlines are common practice. When directly or indirectly funded by public resources, they may fall within Article 107.1 of the Treaty on the Functioning of the European Union (TFEU) that prohibits State aid. It took more than ten (10) years for the European Commission to establish and settle its decision practice on such incentives under the control of the EU Court. 1 Annabelle Lepièce is a member of the Brussels Bar and partner and co-head of the European and Competition law practice at CMS Belgium. She regularly advises airports, public authorities and airlines on State aid rules, Competition law and air transport regulations (airport charges, groundhandling, security, air navigation, etc.) Annabelle.lepiece@cms-db.com.
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