Brussels, Belgium. The European Commission has launched a formal public consultation on a draft revision of the Guidelines on State aid to the air transport sector to reflect post-pandemic market realities. Feedback on the draft is due by June 11, 2026, ahead of adoption alongside a new General Block Exemption Regulation later this year.
Replacement of 2014 standards
The proposed framework would replace the 2014 standards and aims to modernise how governments support airports and airlines while adhering to the European Green Deal and decarbonisation requirements.
Limits on operating aid
Under the draft rules, operating aid covering day-to-day costs such as staffing and maintenance would be restricted to airports with fewer than one million yearly passengers. The commission’s draft assumes airports exceeding this traffic volume should be self-sustaining.
A five-year transitional period is proposed for airports handling between 500,000 and one million passengers to recover from recent energy and health crises.
Block exemption for smaller hubs
Airports with fewer than 500,000 passengers would qualify for a block exemption, allowing them to receive support without prior notification to Brussels, as their impact on EU competition is considered minimal.
Implications for the Republic of Cyprus
The proposed subsidies would not apply to the primary gateways of the Republic of Cyprus, as both major airports exceed the eligibility thresholds. Last year, Larnaca and Paphos airports recorded a combined total of 13.7 million passengers, with Larnaca handling approximately 9.9 million and Paphos recording 3.8 million travellers.
Changes to investment aid and green conditions
The commission said investment aid for infrastructure projects would be permitted only for airports with up to three million yearly passengers, down from the previous five-million-passenger threshold.
Funding for new capacity would be tied to green conditionality, linked to the target of reducing transport emissions by 90 per cent by 2050.
What feedback would you submit to the European Commission on the proposed state aid changes for airports and airlines?