EU seeks tough curbs on airline subsidies in aviation agreements

© Kunertus

The EU could revoke traffic rights to airlines which take ”unfair” public support, according to a new draft ‘fair competition clause’. Although the clause purportedly affects new commercial aviation agreements it wants to negotiate with countries including Turkey, Qatar and the UAE, the clause also lists support in the form of protection from bankruptcy, an advantage long used by US airlines. The EC wants member states to allow it to begin talks at an EU level, rather than bilaterally between governments. It appears to be a wide-ranging list of ‘unfair support’, which includes foregoing a normal return on public funds invested and discriminatory access to airport services.