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Abstract

Wasteful spending of public funds, leading to the creation of “ghost airports”, is often described as a regulatory failure and a major deficiency in European State aid control. It is pointed out that decisions to build or upgrade an airport are often ill-conceived, poorly implemented, and without economic justification. This raises the question whether European law, namely its State aid control system, contains inherent flaws or whether the European Commission’s decision-making process can be improved by increasing reliance on objective economic reasoning under the existing legal framework. This article provides an analysis of the decision-making problems leading to failed aid efforts; of the role of the economic approach in State aids; and of the standard of economic assessment required in State aid cases. The article concludes with de lege ferenda postulates.

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Authors and Affiliations

Jakub Kociubiński
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Abstract

Hardly any sector has been hit as hard by the COVID-19 pandemic as the air transport industry. As lockdown measures are lifted, a recovery phase begins that will shape the global economic landscape for the years to come. In this context this paper raises the question of whether the pre-existing EU instruments for subsidizing air operations – Startup aid and the Public Service Obligation – none of which was designed with economic recovery in mind – can be adapted to the new circumstances after the current ad hoc measures under the Temporary Framework have dried up. The hypothesis which is taken as a starting point is that the existing state aid toolbox has built-in deficiencies which are hampering recovery efforts. This paper therefore attempts to determine whether alternatives can be sought within the confines of the EU state aid law, and if so what such alternatives might be.
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Authors and Affiliations

Jakub Kociubiński
1
ORCID: ORCID

  1. Associate professor (dr. hab.), Faculty of Law, Administration and Economics, University of Wrocław

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