The European Commission has concluded that three German measures in favour of Ryanair and the Frankfurt-Hahn airport are incompatible with EU State aid rules.
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Germany must now recover the incompatible aid, including interest. The Commission has also found in separate decision that other public funding measures for Frankfurt-Hahn airport, Haitec AG and Ryanair do not constitute State aid.
In October 2018, the Commission opened an in-depth investigation to assess whether public funding granted by Germany to Frankfurt-Hahn airport and Ryanair was in line with EU State aid rules.
The Commission's investigation covered two measures in favour of Frankfurt-Hahn airport, namely:
(i) a guarantee granted by the Land Rhineland-Palatinate with respect to a sale of land and
(ii) the return to Frankfurt Hahn airport of a plot of land previously acquired by the Land Rhineland-Palatinate without Frankfurt Hahn airport paying any compensation.
The Commission also investigated four measures in favour of Ryanair, namely:
(i) two marketing agreements concluded in 2005 and 2017 with the Land Rhineland-Palatinate,
(ii) three airport service agreements concluded in 2013, 2015 and 2016 with Frankfurt-Hahn airport,
(iii) a training support, and
(iv) the lease of a crew and pilot school and of a maintenance hall.
The Commission found that the following measures are incompatible with EU State aid rules, namely:
(i) the return to Frankfurt Hahn airport of a plot of land previously acquired by the Land Rhineland-Palatinate without Frankfurt Hahn airport paying any compensation;
(ii) two marketing agreements between the Land Rhineland-Palatinate and Ryanair;
(iii) a training support to Ryanair.
The investigated measures have been found to involve State aid, in particular as measures were found not to be in line with market conditions and measure concerns an economic activity; which does not fulfil any grounds for compatibility invoked by Germany.
On this basis, the Commission ordered Germany to recover approximately €13 to €14 million, plus interest, from Ryanair and €1.25 million, plus interest, from Frankfurt-Hahn airport.
As a matter of principle, EU State aid rules require that incompatible State aid is recovered without delay in order to remove the distortion of competition created by the aid.
There are no fines under EU State aid rules and the purpose of recovery is to restore the situation which existed in the internal market before the aid was paid. By paying back the unlawful aid, the beneficiary forfeits the advantage which it has enjoyed over its competitors.
The three airport services agreements between Frankfurt Hahn airport and Ryanair as well as the lease of a crew and pilot school and of a maintenance hall do not confer an economic advantage on Ryanair given that they were concluded in line with market conditions.
In a separate decision, the Commission has also found, after a preliminary examination triggered by complaints, that four support measures to Frankfurt-Hahn airport, Ryanair and Haitec AG do not constitute State aid within the meaning of Article 107(1) TFEU.
Haitec AG is an aircraft maintenance company operating at Frankfurt-Hahn airport.
The Commission assessed four measures, namely:
(i) an exclusive purchasing agreement between a public real estate company and Frankfurt-Hahn airport;
(ii) a land sale contract between a public company in charge of road construction and maintenance and Frankfurt-Hahn airport;
(iii) a guarantee allegedly granted in 2008 to Haitec AG; and
(iv) the construction of an aircraft maintenance hall allegedly designed for the needs of Ryanair.
The Commission concluded that the first two measures do not confer an economic advantage on Frankfurt-Hahn airport given that they were concluded in line with market conditions.
It also found that the third measure was never granted to Haitec AG.
Finally, the Commission found no need to assess the fourth measure given that the Commission declared the lease of this aircraft maintenance hall to Ryanair in line with EU State aid rules in the above in-depth investigation. ■
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