The European Commission on Thursday adopted new guidelines for limiting state aid to regional airports and airlines, a move the EC claims will reduce competitive distortion by discouraging overcapacity at small, unprofitable facilities.
Airports Council International Europe
The European Commission (EC) wants to impose tighter guidelines restricting state aid for airports and airlines in the European Union (EU). In a consultation document launched on July 3, the EC proposed that all publicly funded aid for airports must end after a 10-year transitional period and that it restrict funding in the meantime to only smaller, regional airports. The same guidelines subject to industry consultation through September 25 would also limit start-up aid for airlines.
The European Parliament’s transport and tourism committee has cleared the way for airlines to start trading slots at European Union airports by endorsing new rules aimed at forcing carriers to use or lose slots. But the European Commission (EC) has expressed concern that both the legislators and EU transport ministers have diluted its reform plan by rejecting its proposal that airlines should lose a slot if they fail to use it at least 85 percent of the time (an increase from the existing 80 percent requirement).
The U.S. government should focus on more efficient aviation security during times of fiscal austerity, according to a new study by the nonprofit Rand research organization. The “Efficient Aviation Security” report, released on August 21, focuses on the costs and the benefits of aviation security in the U.S. in the post 9/11 era. “To make rational security decisions, the benefits of a measure (or group of measures) must be compared with its varied costs to determine whether those benefits exceed the cost,” the authors conclude.