Aviation Industry – Survival Through State Aid

The Coronavirus (COVID-19) pandemic has already caused significant economic losses for companies and citizens alike across the European Union (EU). This has led various affected businesses to examine and enquire whether the rules in relation to state aid allow EU Member States (States) to provide financial support during these difficult times. The concept of state aid encompasses any advantage granted selectively to certain undertakings by the State or through State resources, including grants, subsidies, loans on favorable terms, state guarantees or tax benefit amongst others. Although State aid is generally prohibited, there are a few exceptions that allow governments to assist companies which are facing financial difficulties as a result of the COVID-19 crisis.