The Croatian authorities, which we assisted in the preparation
of the file, notified in August 2022 to the European Commission, a
measure aimed at partially compensating the damage suffered by the
operator of Zagreb International Airport because of the coronavirus
pandemic. The period covered by the compensation is 19 March until
30 June 2020,during which travel restrictions were imposed by
Croatia and other countries to limit the spread of the virus. As a
result, Zagreb International Airport experienced a steep decline in
traffic, which resulted in major revenue losses.
The compensation, which takes the form of a write-off of the
concession fees, amounts to €14.3 million (approximately HRK
107.9 million).
The European Commission assessed this Croatian support measure
under Article 107.2, b) of the Treaty on the Functioning of the
European Union ("TFEU"), which allows the Commission to
declare compatible with the internal market "aid to make good
the damage caused by natural disasters or exceptional
occurrences". In this respect, the Commission considers that
the coronavirus pandemic constitutes an "exceptional
occurrence" because of its exceptional and unpredictable
nature and its significant impact on the economy.
The Commission found that the measure will compensate damage that
is directly linked to the COVID-19 pandemic. The Commission also
found that the measure is proportionate as the compensation does
not exceed what is necessary to make good the damage.
On this basis, the Commission concluded that the Croatian measure
is in line with EU State aid rules.Clearly, this authorisation
follows the generally favourable approach of the European
Commission towards State aid to help the aviation industry in the
context of the pandemic. Many airlines, such as Croatian Airlines,
Air Belgium, SAS, Finnair, Condor, Blue Air, Alitalia, TAROM and
even Aegean Airlines, have received State aid measures on the basis
of Article 107.2, b) of the TFEU for the damage they suffered as a
result of the pandemic, as well as several airport operators in
Italy, Romania and Greece and ground-handler Aviapartner.
Contrary to the Temporary Framework to support the economy in the
context of the coronavirus pandemic that expired on 30 June 2022,
aid under Article 107.2, b) of the TFEU is not subject to a
specific deadline to be notified to the European Commission and
granted to the beneficiaries.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.