EU: Commission opens investigation into public support for Air Nostrum’s fleet renewal in Spain

The European Commission has opened an in-depth investigation to assess whether the plan by the Spanish region of Valencia to grant €9 million of public support to regional airline Air Nostrum for the renewal of its fleet is in line with EU State aid rules.

Air Nostrum is a regional airline headquartered in Valencia (Spain). As part of its plans to boost the economic development of the region, the Regional Government of Valencia, in 2018, approved the granting of a subsidy of maximum €3 million to Air Nostrum. Furthermore, the regional government intends to grant an additional subsidy of maximum €6 million over the period 2019-2020. The measures are aimed at supporting the renewal of the airline’s fleet through the acquisition of additional more environmentally friendly aircraft.

Spain argues that the measure falls under the environmental protection rules of the 2014 General Block Exemption Regulation (“GBER”) and that it does not therefore need to be notified for the Commission’s assessment under State aid rules.

Full Content: Europa Press

Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.