Short- and mid-term Covid-19 effects on the aviation sector. Competition law perspective

• Robert Schuman Centre for Advanced Studies

This forum will analyse whether special needs exist in the short-term/mid-term period in the air sector, until the Aviation Guidelines are reviewed.

While air traffic levels have increased compared to Spring and Summer 2020, recovery is still slow and full of uncertainty. According to the last EUROCONTROL’s forecast, the most likely recovery scenario is that by the end of 2021, traffic will only have recovered to 72% of 2019 levels and it will only get close to pre-pandemic levels by 2025[1].

On 19 March 2020, the Commission adopted a Temporary Framework for State Aid measures, which is based on Article 107(3)(b)TFEU and complements other possibilities available to Member States to mitigate the social-economic impact of the coronavirus outbreak in line with EU State aid rules, notably the possibility under Article 107(2)b TFEU to compensate specific companies or specific sectors for the damages directly caused by exceptional occurrences, such as the coronavirus outbreak.

The 17th Florence Air Forum, co-organised by the Transport Area of the Florence School of Regulation together with the European Commission’s DG COMP’s Directorate F, will examine the hard impact of Covid-19 on the air sector and will explore possible ways-forward to ensure its recovery.

[1] https://www.eurocontrol.int/sites/default/files/2021-05/eurocontrol-four-year-forecast-2021-2024-full-report.pdf

Please kindly note that participation in this forum is by-invitation only.