ANNOUNCED AS TEMPORARYNo
Capital injection and equity stakes (including bailouts)
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.
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