A new context of state aid

Among the notified cases of state aid to airports in the EC’s state aid database, two concession agreements for the upgrade, maintenance, management and operation of regional airports in Greece are included. In the respective decision of the European Commission (2016g), there is a mention that such notification was informed by ‘reasons of legal certainty’. The concession contracts comprise two clusters of 14 regional airports in Greece. The first cluster involves Thessaloniki Airport, Kerkira Airport, Chania Airport, Zakynthos Airport, Kefallinia Airport, Aktion Airport and Kaval Airport. The second cluster involves Rhodes Airport, Kos Airport, Santorini Airport, Mikonos Airport, Mitilini Airport, Samos Airport and Skiathos Airport. Following a tender process, the Fraport AG-Slentel Ltd consortium was awarded the concession. The concessions were

EC guidelines and EU member strategies 199 agreed for a period of 40 years, with the option to be prolonged for a period of up to ten years. In the text of the concession agreements, the consortium is expected to receive clearance from the EC that the concession arrangement will not give rise to the issues of state aid. The EC decided that the notified measures do not constitute state aid. The concession agreements contain so-called public policy remit services provided or procured by the Hellenic Republic (such as regulatory and supervisory authorities, customs control and excises, immigration control, etc.) and the services of public policy remit provided or procured by the concessionaire. The services provided or procured by the state may not be charged to the concessionaire. The rescue and firefighting services and aviation security services may be provided or procured by the concessionaire. The rescue and firefighting services are being charged within regulated capped aeronautical charges; however, no separate charges for such services are allowed. The aviation security services are being charged by a separate security charge, levied by the concessionaire at the regional airports. In accordance with the concession contract, the concessionaire may recover only the respective costs of aviation security services, and any profit margin may not be included in the security charge.

The approach taken by the respective Greek authorities against the EC may be inspiring and recommended for the member states of the EU that intend to use a concession arrangement for their airports.¹⁷ The expansion of such arrangements in airport operations may be expected because of the pressure of the EC on airport financial performance, including regional airports. Fiscal deficit stringency in eurozone and public budgets constraints may be further influencing factors, along with the cross-border expansion of multinational airport companies or other investors.