English
The European Commission opened two in-depth investigations, based on the EU regulations concerning state aids, concerning a support scheme for investing in the regional airports of Romania and to establish if certain discounts and rebates that the airport of Timişoara is offering to certain airline companies are distorting competition. In a press release, the Commission is expressing its concern, particularly when it comes to the fact that the agreements concluded between the Airport of Timişoara and Wizz Air could provide the latter with an unfair economic advantage over its competitors.
The vice-president of the Competition Commision, Mr. Joaquín Almunia, said: "The Commission has the duty to perform investigations when it considers that it is possible for the public authorities to grant subsidies that distort competition. The regulations allow subsidies intended to compensate the services of general economic interest and, under certain economic conditions, the improvement of the access infrastructure or providing support to the creation of new routes on the regional airports. They do not allow the granting of subsidies intended to cover operating losses on a continual basis."
• Regional airports in Romania
Concerning the support scheme for investments in the regional airports of Romania, the Commission has doubts over the fact that public funding fulfils a clearly defined objective of general interest, given the apparent excess of supply when it comes to airport services in Romania. Furthermore, the Commission needs to assess whether the modernized infrastructure is necessary and proportional, especially when considering the limited activity of the airports. The initial investigation indicates the fact that most of the time, Romanian regional airports post losses, and that their operating losses are annually covered by the state. The EU regulations allow the granting of aids for the creation of new routes on the regional airports or for the financing of services of general economic interest. These do not allow the covering on an ongoing basis of operating losses.
Concerning the Timişoara airport, the Commission needs to check whether the annual subsidies given to the airport only serve to allow it to reduce its day-to-day expenses. In the absence of an economic objective of general economic interest, this action would be incompatible with the EU regulations, since it would provide the beneficiary with an unfair advantage over its competitors, which need to function without aid. The Commission will also continue to investigate the contractual relationship between the airport of Timişoara and Wizz Air, namely a marketing contract concluded in 2008 and the non-payment of airport fees of 2.6 million Euros, as well as additional discounts of 72% up to 85% for all the airport fees for high capacity aircraft (namely, the aircraft with a maximum weight exceeding 70 tons upon take off).
The Commission expresses its concern over the fact that such preferential treatment could lead to the forced elimination from the market, of the only competitor that Wizz Air has on certain routes.
The opening of the in-depth investigations concerning state aids allows the Romanian government and the concerned third-parties the possibility of presenting observations concerning the measures in question. This will not affect the final outcome of the investigation.
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