Air transport: State aids granted to Estonian Air are illegal

On 20 February 2013, the Commission initiated the procedure to evaluate the State aid granted by Estonia to Estonian Air and which then was extended to other rescue measures given to the airline. After, on June 2013, Estonia notified the restructuring plan in favor of Estonian Air, and the Commission asked for additional information, after receiving complaints from other airlines companies concerning loans given by Estonia to Estonian Air.

On 9 May 2014 the restructuring aid opening decision was published on the Official Journal of the European Union, and the interested parties were invited to submit their comments on the measures concerned.

The Commission, after the evaluation of the comments submitted, the information received from Estonia and the analysis of the Estonian air transport market, considered some of the measures adopted by Estonia as illegal State aid violating Art. 108(3) TFEU, and stated that those measures should be recovered from Estonian Air in order to re-establish the situation that existed on the market prior to the granting of the aid.

You can read decision at the following LINK.

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