On 12 September 2007, the European Commission launched a formal investigation into the support granted to various air carriers by the Sardinia Region and SOGEAAL SpA, the publicly owned company operating Alghero Airport. The investigation will assess whether such support is in line with EU State Aid rules.
The investigation follows a complaint made by Air One that Italy granted unlawful State Aid to Ryanair with reduced prices for use of the airport.
The Commission will:
Investigate agreements between SOGEALL and Ryanair concerning marketing support and other contributions to assess whether the support could have been granted by a market economy investor. This type of support would not fall under EU State Aid rules
Investigate a number of handling fee rebates granted to low-cost air carriers at Alghero airport
Consider whether financial support and compensation granted to SOGEAAL SpA for its operating losses and capital increase constitutes State Aid in favour of the airport operator.
The Lovells team advising Air One is led by Gianluca Belotti with assistance from Sacha D'Ecclesiis in Rome.
Comment: The case appears significant not only because State Aid granted to one of the largest European low cost airlines is under the scrutiny of the EU Commission, but also because the scope of investigation covers competition aspects of the relationship between airport operators. This case is expected to clarify the Commission approach towards State Aid given to local airports.