Aviation sector: Commission orders recovery of around €14 million in incompatible German State aid from Frankfurt-Hahn airport and Ryanair
Today, the European Commission has concluded that three German measures in favor of Ryanair and the Frankfurt-Hahn airport are incompatible with EU State aid rules. On this basis, the Commission has ordered Germany to recover approximately €13 million, plus interest, from Ryanair and €1.25 million, plus interest, from Frankfurt-Hahn airport.
After opening an in-depth investigation in October 2018, the Commission found that the following measures are incompatible with EU State aid rules:
A return to Frankfurt Hahn airport of a plot of land previously acquired by the Rhineland-Palatinate without Frankfurt Hahn airport paying any compensation; Two marketing agreements between Rhineland-Palatinate and Ryanair and training support to Ryanair.
The return of a plot of land without any compensation as well as the two marketing agreements were found not to be in line with market conditions and training support concerns an economic activity, which does not fulfil any grounds for compatibility invoked by Germany.
The Commission also found that some of the measures do not constitute State aid, such as three airport services agreements (in line with market conditions) and a guarantee granted by Rhineland-Palatinate to Frankfurt-Hahn airport with respect to a sale of land (not being liable to have any effect on trade between Member States or to threaten to distort competition, given that it fulfils the conditions of Commission Regulation (EU) No 1407/2013 (“de minimis aid”)).