EU proposes new state aid rules for small airports

EU regulators proposed new state aid rules for small airports to back green goals. The plan sets funding limits and eases rules for the smallest of these hubs.

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The European Commission proposed revamping state aid rules for smaller airports on May 11, lowering the passenger threshold for investment aid. Under the new framework, airports with up to 3 million annual passengers may receive investment aid tied to green conditions, down from 5 million previously. The proposal marks the first overhaul of European Union air transport regulations in more than a decade.

EU antitrust chief Teresa Ribera said the proposal directs public funding where it is most needed while maintaining a level playing field. The European Commission cited Europe's decarbonization goals and the energy crisis as primary drivers for the update. Regulators plan to scrap start-up aid for new routes, requiring airlines to bear the commercial risk of opening new flight paths.

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