By Henrietta Billings - 4th September 2005
Brussels is set to adopt new rules on government subsidies for regional airports on Tuesday in the wake of the EU’s Ryanair ruling.
The 'college' of commissioners is set to give the all clear to state aid guidelines for regional airports - triggered by a spat with Ryanair over €4 million in handouts from Belgian regional authorities in 2004.
EU transport chief Jacques Barrot is seeking to boost regional airports and new companies -while ensuring transparency and equality of treatment.
Under the guidelines, the EU executive is to allow start-up aid but impose conditions on authorisations of subsidies.
New routing guidelines will, Brussels hopes, mean more openness and avoid discrimination for air operators seeking lucrative low cost deals.
Start-up aid will be restricted to between 30 to 50 per cent of additional costs – such as operating expenditure on staff or aircraft – over a maximum of five years.
Tuesday's new rules are based on draft guidelines published in February this year and opened to public consultation.
In February 2004 the commission ruled against low-cost air carrier Ryanair - arguing that it unfairly benefited from secret deals with Belgium’s Wallonia regional government over Charleroi airport.
As part of a 15 year deal, discounts were given to Ryanair on landing fees and ground-handling charges, as well as deals to help with marketing and pilot training.
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