The European Commission has proposed a major overhaul of its Aviation State Aid Guidelines, introducing significantly stricter rules to restrict public funding for regional airports. The Eu says the revamped rules, put forward for public consultation in mid-2026, are designed to ensure level competition while aligning public spending with EU decarbonisation goals and a post-pandemic economic landscape. They are expected to officially take effect in the first quarter of 2027.
The upcoming restrictions focus on three main areas.
- Governments can only grant investment aid to regional airports handling up to 3m passengers per year, down from the previous limit of 5m, with any allowed funding strictly tied to green conditions for decarbonisation and energy resilience.
- Airports handling between 500,000 and 1m passengers annually will only be allowed to receive state operating aid for a transitional five-year period, with the EU expecting facilities above this tier to cover their own operational costs.
- Extremely small airports under 500,000 passengers will retain more flexibility and will not need prior EU approval for operational support.
The Commission plans to completely scrap start-up aid for airlines launching new routes, arguing that commercial airlines should independently shoulder the financial risk. The change would exclude Cork from receiving any aid but no Shannon.
The proposals have sparked substantial alarm among regional bodies, with the airport association ACI EUROPE criticising the plan for ignoring the realities of smaller facilities facing high capital costs for required security, digital, and environmental upgrades. Representatives in countries with extensive regional aviation networks, such as France, have warned that several prominent regional hubs could face major financial crises or eventual closure under the 2027 and subsequent 2032 framework rollouts.
Teresa Ribera, EU antitrust chief shared “Today’s proposal ensures that public funding is directed where it is most needed while ensuring a level playing field in the single market.”
Olivier Jankovec, Director General of ACI EUROPE shared “Regional airports are so much more than simply transport infrastructure. They are vital economic lifelines that connect communities to jobs, investment, tourism, public services and the wider European Single Market.”
