European Commission reviews state aid guidelines for airlines

The European Commission is currently reviewing feedback from a public consultation that concluded on June 11 regarding revised state aid guidelines for the aviation sector. The new framework is expected to be adopted in the first quarter of 2027. While the Commission suggests that airlines should generally bear their own operating risks in a liberalized market, it acknowledges the necessity of supporting remote regions and islands. Cyprus has expressed concern over potential impacts on its connectivity and has submitted six formal proposals to the Commission. The Cypriot Ministry of Transport advocates for recognizing airports as infrastructure for territorial cohesion and requests transitional support until 2035 to meet environmental standards. Government officials maintain that current connectivity remains secure, emphasizing that Cyprus depends exclusively on air transport for European links. The Commission notes that start-up aid has been used minimally since 2014, with many new routes established independently by airlines. Existing flexibility within current rules will continue to ensure that routes critical to public service obligations remain functional.