Competition Law in Tourism

162 COMPETITION LAW IN TOURISM “Those payments cannot be considered as true consideration for marketing services, but also amount to payments to airlines for increasing their activities in the Region. […] the scheme is designed in such a way that the marketing services to be provided by airlines in the context of activity 2 are intended to promote in the first place, the air transport services provided by those same airlines from / to Sardinia”50. The Commission took into consideration the following factors: – Within the framework of the Sardinian scheme, the marketing services are to be provided by airlines rather than any other type of companies able to offer such services. Airlines naturally promote regions and cities they operate intending to incite potential customers to use their services to fly to the promoted areas. An airline does not promote competitors’ services, even against remuneration. Promoting its own destinations is part of the normal activities of an airline; – There is a clear link in the contracts between the marketing actions and the creation of new routes or the expansion of existing routes. The marketing activities are part of the same annual activity plan; and – A clear distinction is made between marketing services to be provided by airlines and by third service providers within the framework of activity 3. Insofar as the funding in the context of activity 2 is linked to the opening of new routes or the increase of the number of flights on existing routes, it must also be considered as a financial incentive to airlines to increase air traffic and is therefore similar to the funding in the context of activity 1. Accordingly, the Commission concluded that the funding in the context of activities 1 and 2 must be considered as subsidies to airlines for operating more flights to and from Sardinia. Subsequently, the Commission examined whether the Altmark criteria were fulfilled (which exclude the existence of aid in case of compensations to undertakings that are entrusted with a SGEI) and considered that the first criterion was not fulfilled. The Commission clearly established that, in the air services sector, the SGEI could only be imposed following Regulation No. 1008/2008. The qualification 50 Ibid. para. 366.

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