IMPLEMENTATION LEVEL

National

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

Yes

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

all

JUMBO

No

TARIFF PEAK

No
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Inception date: 01 Sep 2015 | Removal date: 31 Mar 2019
Still in force

Financial grant

According to the UK, "The proposed aid ("Protocol for UK Start-Up Aid for Airports of less than 3 million Passengers per annum") is a start-up aid scheme in the aviation sector, whose objective is to create net economic benefits for the UK regions involved by improving the connectivity between these regions and other regions across Europe. [...] The start-up aid will be provided as a direct grant to passenger airlines whose proposals have been accepted [...] The proposed scheme will have a maximum total budget of 60 million GBP, and an indicative annual budget of 16.7 million GBP [...] The proposed scheme will run from 1 September 2015 to 31 March 2019." (para. 4, 6, 10 and 11 letter from the EC to the UK, Brussels 20.08.2015)

Based on the findings of the European Commission, "Support by the UK authorities of new air services distorts or threatens to distort competition between airlines and affects trade between Member States as air transport services is a fully liberalised activity in the internal market, in which many undertakings from different Member States compete against each other." (para. 45 letter from the EC to the UK, Brussels 20.08.2015)

In the GTA database the determination of whether a policy instrument discriminates against foreign commercial interests turns on whether it creates or alters the relative treatment of domestic firms versus foreign commercial interests. On this metric, the state aid proposed here is discriminatory because the state aid is not available to competing firms outside of the implementing jurisdiction.

AFFECTED COUNTRIES

MAP
TABLE
EXPORT

AFFECTED SECTORS AND PRODUCTS

642 Long-distance transport services of passengers
653 Air & space transport services of freight

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