EUROPEAN COMMISSION - PRESS RELEASE
State aid: Commission opens in-depth investigation
into financing of infrastructure projects at German
Leipzig/Halle airport
Brussels, 15 June 2011 - The European Commission has opened an in-depth
investigation to verify whether loans and capital injections granted to the
Leipzig/Halle airport, in Eastern Germany, to finance new infrastructure projects are
in line with EU state aid rules. At this stage, the Commission considers that
Germany has not demonstrated that the public funding, which covers 100 % of the
total investment costs, is justified and proportionate. The Commission is particularly
concerned that the aid may be giving the airport, which has become the European
hub of DHL Express, an unfair advantage vis à vis its competitors in Germany or
elsewhere in Europe. The opening of an in-depth investigation gives interested third
parties the opportunity to comment on the measures under assessment. It does not
prejudge the outcome of the procedure.
In April 2010, Germany notified for legal certainty the public financing of new
infrastructure measures at Leipzig/Halle airport. The infrastructure and
infrastructure-related projects concern in particular noise abatement measures,
creation of de-icing areas, construction of taxiways and bridges, extension of
aprons and hangars, construction of a new aviation terminal and small aircraft shed,
planning costs for the extension of the southern and northern runways, functional
security buildings and checkpoints.
The funding consists of injections of capital totalling € 255 million into Flughafen
Leipzig/Halle GmbH by its public shareholders, mainly Freistaat Sachsen, and Land
Sachsen-Anhalt. As some of the investments started in 2006, the airport operator,
Flughafen Leipzig/Halle GmbH, has also received loans from its public
shareholders.
Germany takes the view that the construction of the infrastructure at the LeipzigHalle airport is not economically viable and is of a safety and security nature. It
claims that as no private investor would finance this infrastructure, it does not
constitute an economic activity in the meaning of EU state aid rules.
IP/11/706
However, a ruling by the European Union's General Court, on 24 March 2011,
confirmed the Commission's view that the operation of an airport is an economic
activity, of which the construction of airport infrastructure is an inseparable part (see
MEMO/11/191). The Commission is of the opinion that the notified measures are
essential for economic activities undertaken by the airport operator and thus allow
the airport to exercise its primary economic activity. The Commission has,
therefore, doubts that the investment project falls under the public policy remit. As
the capital increases were undertaken without an underlying business plan or
assessment of the long-term prospects for profitability, the Commission takes the
preliminary view that they involve state aid. The Commission also has doubts that
the shareholder loans were granted at market rates.
The Commission, therefore, has doubts whether the financing of the notified
infrastructure measures can be considered compatible with EU state aid rules, and
in particular the 2005 EU Guidelines on the financing of airports and start-up aid to
airlines from regional airports. The Commission considers that a large regional
airport as Leipzig/Halle should be able to finance at least part of its infrastructure
costs and that the aid is neither proportionate nor limited to the minimum
necessary.
Background
The Leipzig-Halle airport serves approximately 2.7 million passengers and, since
the construction of the southern runway in 2008, is the European hub of DHL
Express. Approximately 524,000 tonnes of cargo were transported to and from the
airport in 2009. In view of the airport's good economic prospects, a 100% public
funding of the investments seems to be excessive and may trigger a windfall profit
for the airport that would distort competition. The airport is in competition with cargo
airports not only from Germany but also from other Member States, such as Vatry
airport in France and Brussels airport in Belgium.
The Commission has started a review of the 2005 EU Guidelines on the financing
of airports and start-up aid to airlines from regional airports (IP/11/445).The
consultation period ended on 7 June and the Commission is currently analysing
submissions from stakeholders and Member States. In light of the comments
received, the Commission will decide whether the guidelines need to be revised
and, if so, would consult further before adopting new rules.
The results of the public consultation will be made available in due time on the DG
Competition website once any confidentiality issues have been resolved.
The non-confidential version of the decision will be published in the Official Journal
of the EU and made available under the case number SA.30743 (ex N 138/2010) in
the State Aid Register on the DG Competition website once any confidentiality
issues have been resolved. New publications of state aid decisions on the internet
and in the Official Journal are listed in the State Aid Weekly e-News.
Contacts :
Amelia Torres (+32 2 295 46 29)
Maria Madrid Pina (+32 2 295 45 30)
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