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State Aid

State aid: Iceland's agreements with Icelandair on airline tickets are not state aid

9.7.2014

PR(14)46

Today, the Authority concluded that the Icelandic State's purchase of airline tickets through various framework agreements with Icelandair is not considered as state aid. The Authority began looking into this matter in late 2012 following a complaint.

The Icelandic State purchased airline tickets from Icelandair for which it had an actual need, at the same price and according to the same conditions as a large number of corporate airline customers of Icelandair. The framework agreements concluded with Icelandair are thus considered to be normal commercial transactions which did not confer an advantage upon Icelandair. The conditions for the presence of state aid are therefore not present.

The Authority has also concluded that the alleged preferential treatment given to Icelandair by the Icelandic Civil Aviation Authority in its procedure concerning the granting of traffic rights is without object as the procedure had been annulled by the Ministry of Transport and dealt with in a satisfactory manner by the Icelandic Competition Authority.

A public version of the decision will be published on the Authority's website, normally within a month.

 

For further information, please contact:

Mr. Andreas Kjeldsberg Pihl
Press & Information Officer
tel. (+32)(0)2 286 18 66
mob. (+32)(0)492 900 187

 




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