Permissible forms of state aid for airlines in the era of the COVID-19 pandemic (part II) Cover Image

Dopuszczalne formy pomocy państwa na rzecz linii lotniczych w dobie pandemii COVID-19 (część II)
Permissible forms of state aid for airlines in the era of the COVID-19 pandemic (part II)

Author(s): Jadwiga Urban-Kozłowska
Subject(s): Health and medicine and law, Public Finances, Transport / Logistics
Published by: Wydawnictwo Naukowe Wydziału Zarządzania Uniwersytetu Warszawskiego
Keywords: state aid; COVID-19 pandemic; aviation law; European Union competition law; air carriers;

Summary/Abstract: The aim of this study is to critically analyze the use of two types of state aid – emer- gency aid (Article 107(2)(b) TFEU) and anti-crisis aid (Article 107(3)(b) TFEU), which played a key role in supporting air carriers during the COVID-19 pandemic. This will make it possible to compare both types of aid, and to answer the question of their importance and usefulness in the context of supporting air carriers, and more broadly, entrepreneurs overall, during extraordinary events such as COVID-19.The premises for each of these exemptions will be discussed separately, and theoretical considerations will be accompanied by examples from the decision-making practice of the European Commission and the case law of EU courts. In the field of emergency aid, three issues of particularimportance will be examined. First, the paper will consider whether the COVID-19 pandemic can be considered a phenomenon falling within the scope of Article 107 section 2 letter (b) TFEU. Secondly, it will be analyzed what types of damages may be compensated on this basis. Thirdly, the paper will discuss the methods of determining the amount of compensation due, so that it meets the condition of proportionality.The analysis of the anti-crisis aid exemption will begin with a discussion of the most important conditions for its admissibility. The paper will then examine in detail the question whether, and if so, in what cases, a national measure in the form of individual aid can be considered appropriate to remedy a serious disturbance in the economy of a given Member State. Finally, the requirements that an aid must meet, in order to be considered proportional, will be examined.The analysis carried out will show the most important differences and similarities between emergency aid and anti-crisis aid. In particular, the different purposes served by these two types of aid will be presented. It will be shown that both emergency and anti-crisis aid play an important role in the process of overcoming the COVID-19 crisis, and that the funds granted within them complement each other. Therefore, these exemptions, from the general EU state aid ban, provide the necessary flexibility in the EU state aid system, enabling Member States to adapt their economic policies to the serious disturbances or crises that sometimes occur.

  • Issue Year: 12/2023
  • Issue No: 5
  • Page Range: 18-37
  • Page Count: 20
  • Language: Polish