428 COMPETITION LAW IN TOURISM decentralisation of the Public Administration”16. Moreover, one of the fundamental tasks of the state consists in promoting “the harmonious development of the whole of Portuguese territory, with particular regard to the ultraperipheral nature of the Azores and Madeira archipelagos”17. The cooperation between sovereign bodies and the regional bodies of the Azores and Madeira entails that the former must ensure, in cooperation with the latter, the economic and social development of the autonomous regions with the aim, in particular, of remedying inequalities deriving from insularity18. Traditionally, Portuguese flag carriers have been entrusted with services of general economic interest concerning given routes between the continental territory and the islands. The liberalisation of airline routes concerning the archipelagos of Madeira and Azores began, respectively, in 2008 and 2015. According to regional data, the liberalisation of the airline routes in Madeira from 2008 onwards resulted in the entry of low-cost companies in the same routes and the number of passengers has consistently increased. The same situation has also occurred in Azores. 2015 was the year when the liberalisation of the airline routes to São Miguel and Terceira islands occurred, with the former island being the largest and most populous of the archipelago. According to regional data, the number of passengers arriving at the Azorean airports increased by 21.2% and has grown ever since19. Notwithstanding, there are several routes which have been considered for the provision of services of general economic interest, for reasons such as the insufficient commercial attractiveness for airlines and the exiguity of the estimated demand, as is further detailed hereunder in F.2.4.2. Maritime transport between the islands is also very relevant. C. COMPETITION AND TOURISM – CONTEXT C.1. From the perspective of the European Union The Treaty on the Functioning of the European Union (“TFEU”) establishes common rules on competition which apply to undertakings and also specifically 16 Article 6(1) of the Constitution of the Portuguese Republic. 17 Article 9(g) of the Constitution of the Portuguese Republic. 18 Article 229 of the Constitution of the Portuguese Republic. 19 For more information, please visit the website of the Azores Business Development Society available here: https://www.sdea.pt//index.php?op=114&idioma=us.
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