Competition Law in Tourism

HOW TO SUPPORT THE DEVELOPMENT OF NEW ROUTES 155 When there is no selectivity, the airports can freely choose the maximum level of the discounts for all charges (airport and ground-handling), depending of course of their national regulatory framework. Nevertheless, airport charges that are too low may impact the airport profitability and may result in the need for an operating and/or investment aid in favour of the airport. In the event that such aid does not fall within the scope of the GBER and has to be approved by the European Commission, it is doubtful that the Commission would approve aid if it notices that the airport charges are too low. The issue in such case would be to determine the adequate level of airport charges in the absence of a “market price” in this sector as indicated in the Commission’s Aviation Guidelines37. 2.3. The remuneration for publicity on an airline’s website In November 2008, the European Commission opened a formal proceeding concerning an alleged aid granted by the Chamber of Commerce and Industry of Pau-Béarn (CCIPB) to the company Airport Marketing Services (AMS), a subsidiary of Ryanair38. The Commission wished to investigate more closely a contract for marketing services on the Internet, concluded between the CCIPB and AMS.The contract detailed howAMS was to provide a number of advertising services for inclusion on Ryanair's website to promote the various tourist and business attractions of the Pau and Béarn region. The main tool for providing marketing services under the contract was Ryanair’s website as it enabled direct targeting of potential passengers of the low-cost airline Ryanair. The marketing services contract was also concluded on 30 June 2005, for five years, with the possibility of a further five-year extension. On the basis of that contract, the CCIPB pays AMS a flat-rate of 437,000 € a year. This practice has been widely spread in many European airports. Under the private investor principle, if the remuneration paid for corresponds to the value of the services, it does not contain any State aid. That position was applied by the Commission in a Decision of 21 January 1998 concerning aid granted by the Flemish Region to the company Air Belgium and the tour operator Sunair in connection with the use of Ostend Airport39. In this Decision, the Commission analysed a payment by the Flemish Region 37 Idem, pp. 14-15. 38 OJ C41, 15/02/2008, p. 11. 39 Op. cit.

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