Competition Law in Tourism

TOURISM LAW AND COMPETITION – A PORTUGUESE PERSPECTIVE 469 below 200.000 passengers per year in the last three years153 and Portugal reported to the Commission the SGEI of these five airports in 2016-2017154. Given all these features, “Portugal considers that the need to ensure connectivity of an isolated area of the European Union justifies the SGEI, in view of the lack of alternative means of transport available and in light of the criteria set out in the Guidelines on State aid to airports and airlines (“Aviation Guidelines”)”155. In addition, “SATA handles all of the air-cargo within the Azores islands, that is around 2.900 tonnes per year, and around 1.500 tonnes per year from Azores to other destinations, that is nearly 60% of total air-cargo outside Azores, including fish (around 60%), mail (around 10%) and medical supplies. Lastly, according to the decision, as regards commercial routes (non PSO) between the Azores archipelago and the rest of the territory of the European Union, at present, TAP, Ryanair, Arkefly and Jetairfly serve them. As concerns direct routes, Ryanair connects the Azores with London, Manchester and Frankfurt. Jetairfly has a route connecting Azores with Brussels. Arkefly connects Azores with Amsterdam and Tenerife in the Canary Islands (Spain). As regards SATA’s contribution to the economic development and notably tourism, the Portuguese authorities start by reminding the nature of OR156 and highlight notably that PSO flights guaranteeing air connections inter-island and between the Region and Portugal mainland provided by SATA Air Açores and Azores Airlines are SGEI. Moreover, “the international routes operated by Azores Airlines are particularly important for the Region, considering the spread around the world of the Azorean migrant communities. The Azorean diaspora is estimated at 1.5 million people, most of them in North America. SATA ensures connections with diaspora communities, which are key for the region’s economy”157. Thirdly, the Portuguese authorities highlight that “SATA is the largest company and one of the most important employers of the Region. According to Portugal, SATA generates around 5.2% of the regional GDP and participates in 153 In 2019, when the number of passengers (departing and arriving) between 2017 and 2019 was the highest in all five airports, the number of passengers was as follows: Pico (144 787), Graciosa (57 013), Corvo (8 825) São Jorge (80 629) and Flores (63 568). 154 Report available at: https://ec.europa.eu/competition/state_aid/public_services/2016_2017/portugal_ en.pdf. 155 Guidelines on State aid to airports and airlines, point 72, OJ C99 of 4.4.2014, p. 3. 156 See above note 7. 157 Around 113.000 passengers came from North America in 2019 and the number of passengers from that continent has been increasing significantly in the last few years.

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