IMPLEMENTATION LEVEL

National

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

all

JUMBO

No

TARIFF PEAK

No
← back to the state act
Inception date: 01 Oct 2011 | Removal date: open ended
Still in force

Bailout (capital injection or equity participation)

On 15 March 2016, the European Commission approved state aid to the French airline Air Austral.
The airline had received a capital injection of 66.3 million EUR from Semantra, its parent company belonging to the Commerce Council of Réunion, between October 2011 and the summer of 2012.
According to the EC, "By increasing the capital of Air Austral not at market conditions, SEMATRA granted the company a selective advantage through State resources. Thisenabled Air Austral to practice more aggressive prices and gain market share, with significant impact on competition and trade between Member States. Therefore, the Commission believes that the recapitalization of Air Austral by SEMATRA constitutes state aid." (own translation).
A state measure in the GTA database is assessed solely in terms of the extent to which its implementation affects the extent of discrimination against foreign commercial interests. On this metric, the state aid proposed here is discriminatory.
 

AFFECTED COUNTRIES

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