As the European Commission reviews changes to its Aviation State Aid Guidelines, ACI EUROPE has urgently requested an extension of operating aid for regional airports. The current deadline to phase out this support by 2027 poses a significant risk to the financial stability of regional airports and the essential air connectivity they provide across Europe.
The European Commission has long recognized the importance of state aid in fostering fair competition and maintaining regional air links. However, the proposed 2027 deadline for eliminating operating aid overlooks the financial challenges faced by regional airports. These airports struggle with high infrastructure costs and cannot benefit from the economies of scale that larger airports enjoy, making it difficult for them to stay financially viable, even in favorable conditions. This situation has worsened due to the COVID-19 pandemic and the anticipated impact of the EU’s Fit for 55 climate legislation, which could increase operating costs and make air travel on less-trafficked routes more expensive.
Regional airports already face high fixed costs, regardless of passenger numbers. The current model provides operating aid to airports serving fewer than 3 million passengers annually, helping bridge the financial gap and ensuring that these airports can continue operating. This support is vital for maintaining air services to smaller communities, fostering regional economic development, and ensuring connectivity. However, reducing or removing this aid without a clear alternative could result in airport closures, creating a deeper divide between well-connected urban centers and the regions that rely on regional airports for their economic survival.
The potential impact of removing operating aid is severe. ACI EUROPE suggests lowering the threshold for receiving aid to 1 million passengers per year, recognizing the critical role these smaller airports play in sustaining local economies. Without operating aid, many regions could lose essential air connections, leading to slower economic growth and fewer opportunities for local populations. These areas risk becoming more isolated, diminishing both social and economic cohesion within the EU.
Supporting operating aid is not only an economic necessity but also a strategic imperative for Europe’s future. A recent report by Mario Draghi on “The Future of European Competitiveness” stressed the importance of productivity-driven growth, especially as Europe faces a shrinking workforce. With an expected annual loss of 2 million workers by 2040, maintaining regional air connectivity is vital for fostering economic resilience. Studies show that a 10% increase in direct air connectivity leads to a 0.5% rise in GDP per capita, highlighting the economic value of well-connected regions.
Regional airports are still recovering from the pandemic, with passenger traffic remaining 34.5% below pre-pandemic levels. Many of these airports are struggling to regain financial stability, making it even more critical to protect their continued operation. Without support, these airports could lose crucial air services, further impacting the regions they serve.
To protect Europe’s economic growth, social cohesion, and connectivity, ACI EUROPE urges the European Commission and Member States to extend operating aid for regional airports. This support is not just an investment in infrastructure; it is an investment in the long-term prosperity of Europe. Safeguarding these vital links is essential for the survival of communities and for ensuring that Europe remains competitive and connected in the years to come.
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