HOW TO SUPPORT THE DEVELOPMENT OF NEW ROUTES 153 For the record, selective support measures must be founded on objective criteria to avoid the possible risk of an abuse of a dominant position under Article 102 TFEU30. Rebates on an airport or ground-handling charges based on the volume of passengers are allowed if the progression in the scale is proportional and if the system is justified by the commercial revenues brought by the airlines. 2.2. Non-selective rebates on airport charges General rebate schemes, which are either available to all airlines for the launch of new routes or based on the volume of passengers the airlines generate, do not constitute State aid under certain conditions because they are not selective. In 1999, the European Commission examined rebates on airport charges granted by the Manchester airport for the launch of new routes following a complaint31 arguing that rebates on the passenger charges granted to Continental Airlines were unlawful State aid under Article 107.1 TFEU. The rebates were granted for two years (a 100% reduction in the first year and a 50% reduction in the second year) and only for the operation of a new route connecting Manchester to Newark. Such rebates were available to all airlines starting new destinations. The Commission held that “granting discounts on landing fees to airlines is a standard commercial practice that airports usually follow to encourage new service and attract new customers”, which do not fall within the scope of Article 107.1 TFEU when they are limited in time, open to all airlines and public32. According to the Commission, they constituted a general measure and thus not State aid. The same principle applies to general public rebates based on the volume of passenger airlines transport. When these rebates are general measures, available to all interested airlines that are able to reach a certain volume, these incentives are not selective and thus do not constitute State aid. After the Manchester case, the European Commission adopted a stricter approach. It systematically verified whether the rebates on and the exemptions of airport charges fulfilled the market economy operator test and were profitable for the airport (see below) without conducting a profound analysis of the 30 The first step in determining whether an airport has a dominant position is to define in which market (judged by its products and geographical dimensions) its competitors are capable of promoting an effective competition or constraining the airport’s conduct. Once the boundaries of this market have been defined, it is necessary to calculate the market share of the competitors to make a preliminary assessment of their degree of dominance. 31 Decision of 14 June 1999, Manchester Airport, NN 109/98. 32 Ibidem, point 8.
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