EUROPEAN COMMISSION Brussels, 15.07.2010 C(2010) 4913 PUBLIC VERSION WORKING LANGUAGE This document is made available for information purposes only. Subject: State aid No N 114/2010 – Belgium Financial start-up contribution for important programmes which improve the promotion and the development of Antwerp Airport Dear Sir, 1. PROCEDURE 1. In accordance with Article 108(3) of the Treaty on the Functioning of the European Union (TFEU)1, and by electronic notification dated 23 March 2010 (registered under reference SANI 4252) the Belgian authorities notified the Commission of their intention to put in place an aid scheme entitled "Financial start-up contribution for important programmes which improve the 1 With effect from 1 December 2009, Articles 87 and 88 of the EC Treaty have become Articles 107 and 108, respectively, of the TFEU. The two sets of provisions are, in substance, identical. For the purposes of this decision, references to Articles 107 and 108 of the TFEU should be understood as references to Articles 87 and 88, respectively, of the EC Treaty where appropriate. Zijne Excellentie de Heer Steven VANACKERE Minister van Buitenlandse Zaken Karmelietenstraat 15 B - 1000 Brussel Commission européenne, B-1049 Bruxelles – Belgique Europese Commissie, B-1049 Brussel – België Téléphone: 00 32 (0) 2 299.11.11. promotion and the development of Antwerp Airport". The European Commission acknowledged receipt of the notification by e-mail on the same date and this case was given the number N114/2010. 2. The Commission requested further information by letter of 28 April 2010. The Belgian authorities provided the requested information on 31 May 2010. 2. CONCISE DESCRIPTION OF THE AID/MEASURE 2.1. Purpose of the aid 3. Antwerp Airport is a regional airport with an annual passenger volume of less than 1 million. This airport is situated in the Flemish Region; the latter is the competent authority for the management of the airport. The purpose of this start-up aid is the economic development of Antwerp Airport. 4. The development of Antwerp Airport is aimed at by attracting a number of airline companies to offer different services. The start-up aid is justified by the following arguments. 5. The airport is of great importance for the province and city of Antwerp as a factor determining the location of businesses. Researches shows that the presence of an airport is decisive in the choice of location of internationally oriented companies. Cluster effects can be expected as airport oriented companies, like logistic service companies, encourage related companies to also locate in the area. This clustering increases with the growth of the airport. 6. Through its specific features and small-scale character, Antwerp Airport can easily anticipate the growing need of business people to travel fast and comfortable. This is shown, amongst others, by the success of the current flights to London City and to Manchester, and the expansion of business aviation, supported by the construction of additional hangars by two companies in this sector. The regional airport of Antwerp anticipates several needs of the business world as an optimal accessibility by car, taxi or bus, as well as a check-in up to 20 minutes prior to departure due to very short walking distances and a free parking. It should be emphasized that the speed, the flexibility and the comfort of the offered services are very important assets in the future development of this market segment. 7. In addition, the current capacity of Antwerp Airport and its passenger terminal is insufficiently used with the existing connections and frequencies. On week days, 4 to 5 flights to London City are operated; also 2 flights per week day are operated to Manchester. 8. A first initiative aimed to tackle the problem of undercapacity was undertaken in 2007 when the Belgian authorities notified the Commission of their intention to set up a start-up aid scheme for opening new routes and creating additional frequencies from/to Antwerp Airport. This scheme, which expired on 1 January 2010, had been cleared by Commission's decision referrenced N 2 156/20072 on the basis of the Community guidelines on financing of airports and start-up aid to airlines departing from regional airports3. 9. By means of the public support granted in the framework of the start-up scheme for 2007–2009 an additional route was set up, conecting Antwerp to Manchester. This route, which is currently operated by the company CityJet, former VLM, benefited from the subsidy for the above-mentionned period and generated accordingly the following number of passengers: – For 2007: 25.823 passengers; – For 2008: 26.725 passengers; – For 2009: 26.652 passengers. 10. After expiring the three years of subsidized period the air carrier operates this connection in a autonomous way, without further public support. 11. The slight decrease registered in 2009 was imputable to the negative impact of the financial and economic crisis. However, according to the submitted information by the Belgian authorities, the activity is currently recovering. 12. In the light of the abovementioned arguments Belgian authorities concluded that the aid presently under examination will stimulate and keep promoting the start-up of new routes and connections. This will ensue during this period in additional demand for Antwerp Airport, both from private individuals and companies. 2.2. National legal basis 13. The Special Act of 8 August 1980 on institutional reform (Belgian Official Gazette 15 August 1980), in particular Article 6, §1, X, 7°, stipulates that the Regions are competent for the "equipment and operation of the airports and the public airfields, with the exception of Brussels National Airport". This Special Act has been modified by the Act of 8 August 1988 modifying the Act of 8 August 1980 on institutional reform (Belgian Official Gazette 13 August 1988). 14. The Co-operation Agreement of 30 November 1989 between the Belgian State which acts for the Nationale Maatschappij der Luchtwegen4 and the Regions (Belgian Official Gazette 9 March 1989), read jointly with the Royal Decree of 5 August 1992 (Belgian Official Gazette 1 September 1992) effect the transfer of goods, rights and obligations of the Nationale Maatschappij der Luchtwegen to the Flemish and Walloon Regions. 15. While in keeping with Article 22 of the Flemish Government Decree of 8 June 1994 on the financial and material management of the Separate 2 OJ C 271, 14.11.2007, p. 2 3 OJ C 312, 9.12.2005, p.1 4 National company for air traffic and navigation adopted in 1998 the denomination Belgocontrol. 3 Management Services Antwerp Airport and Ostend Airport (Belgian Official Gazette 20 October 1994) the Flemish Government "determines landing, take-off and passenger taxes", the Separate Management Service Antwerp Airport is authorised to “fix the other tariffs for the use of the infrastructure and the sale prices of the services of the airport itself". 16. The Flemish Government Decree of 27 July 2004 determines the competences of the members of the Flemish Government (Belgian Official Gazette 4 August 2004), modified by Decrees of the Flemish Government of 15 October 2004 and 23 December 2005. 17. The Ministerial Order of 13 March 2009 (Belgian Official Gazette of 8 April 2009) determines airport fees for Antwerp Airport. Pursuant its article 13(3), "Specific agreements may be concluded for important programs aiming at the promotion and at the development of airports". 2.3. Administration of the aid 18. Antwerp Airport is owned by the Flemish Region and is managed by the Flemish department Mobility and Public Works as a ‘Separate Management Service’. 19. The bookkeeping of Antwerp Airport is being supervised by the internal services of the Flemish government and by the auditor’s office. 20. The financial start-up contribution will be paid by the Separate Management Service Antwerp Airport. This contribution will be booked as working expenses and this on a new, separate cost centre. The charges for the new connections, imposed in implementation of the Ministerial Order of 13 March 2009 determining airport fees for Antwerp Airport will be entered as operating revenue. 21. With respect to the budget rules, the Separate Management Service Antwerp Airport makes a yearly budget of all corporate yields and corporate expenses, following the instructions of the Flemish government. This budget is joined to the general expenditure budget of the Flemish Region. 2.4. Form of the aid 22. The start-up aid will take the form of a reduction on landing/take-off fees and on passenger fees, limited to a digressive percentage of the start-up costs, such as marketing and advertising costs and installation costs which the airline has to incur to start up the new route or increase the frequency on existing routes. 2.5. Usually applicable airport fees 23. The Ministerial Order of 13 March 2009 determines airport fees for Antwerp Airport as follows. 24. For aircraft with a maximum takeoff weight (MTOW) of 10 tonnes, the landing and takeoff fees amount to 4 € per tonne per landing and per takeoff, between 6:30 am and 11:00 pm local time. The minimum fee is 12 € per landing or takeoff. 4 25. For aircraft with a MTOW of between 10 and 30 tonnes, the landing and takeoff fees amount to 40 €, with additional 3 € per tonne above 10 tonnes, per landing or takeoff between 6:30 am and 11:00 pm local time. 26. For aircraft with an MTOW of 30 tonnes or higher, the landing and takeoff fees shall amount to 100 €, with additional 4 € per tonne above 25 tonnes, per landing or takeoff between 6:30 am and 11:00 pm local time. 27. The fee for parking aircraft at the airport amount to 3 € per day and per tonne or portion thereof, with a minimum of 15 €.