Neutrality and Equality Aspects in the EU State Aid Temporary Framework 2020: The Case of the Airline Industry
Following the declaration of the COVID-19 pandemic, the restrictions imposed by the Member States (MSs) of the European Union (EU) led the tourism and commercial air transport industry to face serious financial difficulties that required airlines to apply for state support. In March 2020, the Europe...
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| Format: | Article |
| Language: | English |
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Sciendo
2022-05-01
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| Series: | TalTech Journal of European Studies |
| Subjects: | |
| Online Access: | https://doi.org/10.2478/bjes-2022-0005 |
| _version_ | 1797814143611305984 |
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| author | Kasser Kevin Solarte-Vasquez Maria Claudia |
| author_facet | Kasser Kevin Solarte-Vasquez Maria Claudia |
| author_sort | Kasser Kevin |
| collection | DOAJ |
| description | Following the declaration of the COVID-19 pandemic, the restrictions imposed by the Member States (MSs) of the European Union (EU) led the tourism and commercial air transport industry to face serious financial difficulties that required airlines to apply for state support. In March 2020, the European Commission adopted a State Aid Temporary Framework (TF) for the COVID-19 period to simplify the process of granting aid, allowing the MSs rapid economic interventions. Claims regarding the approval of State aid to certain airlines reached the EU General Court (EGC), on the grounds of violation of the fair competition principle. It became clear that the processes enabled by the TF dispensed unequal treatment to airline companies and that the flexibility of the TF created competition imbalances. In spite of these events, little attention has been given to the way its application ignores the requirements of EU State aid control and other procedural justice and fairness principles, by failing to ensure neutrality and equality. This article addresses the matter using a standard legal interpretive approach to explain the imbalances created by the regulation. It presents a systematic review of the current regime, identifies the TF inefficiencies affecting competition principles, and argues for specific adjustments that could enhance its transparency. These contributions are useful to improve the existing framework and help prepare for a better management of future crises. |
| first_indexed | 2024-03-13T08:03:12Z |
| format | Article |
| id | doaj.art-6499473b2ddc4e92b8de90e8cbf39341 |
| institution | Directory Open Access Journal |
| issn | 2674-4619 |
| language | English |
| last_indexed | 2024-03-13T08:03:12Z |
| publishDate | 2022-05-01 |
| publisher | Sciendo |
| record_format | Article |
| series | TalTech Journal of European Studies |
| spelling | doaj.art-6499473b2ddc4e92b8de90e8cbf393412023-06-01T09:44:19ZengSciendoTalTech Journal of European Studies2674-46192022-05-011219912210.2478/bjes-2022-0005Neutrality and Equality Aspects in the EU State Aid Temporary Framework 2020: The Case of the Airline IndustryKasser Kevin0Solarte-Vasquez Maria Claudia1Department of Law, School of Business and Governance, Tallinn University of Technology, Ehitajate tee 5, Tallinn19086, EstoniaDepartment of Law, School of Business and Governance, Tallinn University of Technology, Ehitajate tee 5, Tallinn19086, EstoniaFollowing the declaration of the COVID-19 pandemic, the restrictions imposed by the Member States (MSs) of the European Union (EU) led the tourism and commercial air transport industry to face serious financial difficulties that required airlines to apply for state support. In March 2020, the European Commission adopted a State Aid Temporary Framework (TF) for the COVID-19 period to simplify the process of granting aid, allowing the MSs rapid economic interventions. Claims regarding the approval of State aid to certain airlines reached the EU General Court (EGC), on the grounds of violation of the fair competition principle. It became clear that the processes enabled by the TF dispensed unequal treatment to airline companies and that the flexibility of the TF created competition imbalances. In spite of these events, little attention has been given to the way its application ignores the requirements of EU State aid control and other procedural justice and fairness principles, by failing to ensure neutrality and equality. This article addresses the matter using a standard legal interpretive approach to explain the imbalances created by the regulation. It presents a systematic review of the current regime, identifies the TF inefficiencies affecting competition principles, and argues for specific adjustments that could enhance its transparency. These contributions are useful to improve the existing framework and help prepare for a better management of future crises.https://doi.org/10.2478/bjes-2022-0005airline industrycovid-19european unionfair competition principleprocedural justicestate aid temporary frameworktransparency |
| spellingShingle | Kasser Kevin Solarte-Vasquez Maria Claudia Neutrality and Equality Aspects in the EU State Aid Temporary Framework 2020: The Case of the Airline Industry TalTech Journal of European Studies airline industry covid-19 european union fair competition principle procedural justice state aid temporary framework transparency |
| title | Neutrality and Equality Aspects in the EU State Aid Temporary Framework 2020: The Case of the Airline Industry |
| title_full | Neutrality and Equality Aspects in the EU State Aid Temporary Framework 2020: The Case of the Airline Industry |
| title_fullStr | Neutrality and Equality Aspects in the EU State Aid Temporary Framework 2020: The Case of the Airline Industry |
| title_full_unstemmed | Neutrality and Equality Aspects in the EU State Aid Temporary Framework 2020: The Case of the Airline Industry |
| title_short | Neutrality and Equality Aspects in the EU State Aid Temporary Framework 2020: The Case of the Airline Industry |
| title_sort | neutrality and equality aspects in the eu state aid temporary framework 2020 the case of the airline industry |
| topic | airline industry covid-19 european union fair competition principle procedural justice state aid temporary framework transparency |
| url | https://doi.org/10.2478/bjes-2022-0005 |
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