The European Commission has found that Bulgaria’s €30.7 million (€60 million) scheme to support air carriers affected by the coronavirus pandemic is in line with the Temporary Framework for State Aid.
The scheme consists of two types of support, both of which will take the form of direct grants. The first type of support provides support for the uncovered fixed costs of air carriers whose turnover between March 2020 and December 2021 has decreased by at least 30% compared to the same period in 2019. The second type of support consists of a limited amount of support for undertakings which have seen a decrease in turnover in 2020 of less than 30% compared to the same period in 2019. The scheme will be open to air carriers of all sizes holding a Bulgarian operating licence. The aim of the measure is to address the liquidity needs of these companies and help them to continue their operations during and after the pandemic.
The Commission found that the Bulgarian scheme meets the conditions set out in the Temporary Framework. In particular, the aid will not exceed (i) EUR 12 million per beneficiary for the first type of support; and (ii) EUR 2.3 million per beneficiary for the second type of support. In both cases, the aid will be granted no later than 30 June 2022. The Commission has concluded that the measure is necessary, appropriate and proportionate to remedy a serious disturbance in the economy of a Member State in accordance with Article 107(3)(b) TFEU and the conditions laid down in the Temporary Framework. On this basis, the Commission approved the measure under EU State aid rules.
More information on the Interim Framework and other actions taken by the Commission to address the economic impact of the coronavirus pandemic can be found here.
The non-confidential version of the decision will be made available under No SA.100321 in the State aid register on the Competition Commission’s website once any confidentiality issues have been resolved.