During a panel session on policy debate at this year’s ACI Europe Regional Airports Conference and Exhibition (RACE), airport and airline leaders called for action from Europe’s policymakers, as they declared that without ongoing state aid regional airports are at risk of disappearing.
Describing Europe’s regional airports as a vital lifeline for the continent’s remote and underserved regions, panellists explored how best to balance competition rules with the need for economic and social cohesion.
Engines of economic and social growth
Regional airports, speakers agreed, are more than just transit points – they are engines of economic growth, social inclusion and regional connectivity. “Regional aviation plays an essential role in the economic and social development of European communities, increasing tourism, investment, employment, social services and ensuring cohesion of regions and that no one is left behind,” said Montserrat Barriga, Director General of European Regions Airline Association (ERA).
Bolstering this argument, data from ACI shows that a 10 per cent increase in air connectivity leads to a 1.6 per cent boost in employment and a 0.5 per cent rise in GCP per capita. Similarly, a study published by ERA demonstrates that Europe’s regional airlines sustain 4. 5 million jobs and contributes €203 million in gross value added, including their impact on tourism.
However, despite providing vital connectivity and an opportunity for socio-economic growth, ACI ‘s data also shows that nearly 50 per cent of regional airports have yet to recover to pre-pandemic traffic levels. Rising operating costs due to inflation and energy crises, limited growth in non-aeronautical revenues and seasonal demand combined with workforce challenges, are all factors putting regional airports increasingly at risk of closure.
Small regional airports most at risk
A study, carried out by Oxera on behalf of ACI Europe paints a stark picture. Airports with fewer than one million passenger annually struggle to generate consistent and significant operating profits. The need for continued financial support beyond April 2027, when the existing aviation state guidelines are due to expire, is vital to ensure the viability of these smaller airports. Simon Yank, a senior consultant at Oxera, revealed that structural changes in the industry, such as the consolidation of airlines and supply chain challenges will limit growth in aeronautical revenues in the coming years. Additionally, the cost of staffing customs and border control, as well as firefighting and air traffic control teams, can have a significant impact on an airport’s ability to break even. “How these costs are met varies between member states,” said Yank. “Some airports receive public funding to help recover these costs, while others don’t.”
He also pointed to environmental regulations, including the EU’s Fit for 55 package and the growing need to invest in electric charging infrastructure, which are putting airports under further pressure.
Sustainable growth
Fanny Charles, Managing Director SEALAR, agreed. “We know that in ten- or 15-years Europe’s network of small airports, which serve as testbeds for next-generation aircraft and decarbonisation of the sector, will play a vital role in aviation’s low carbon future. However, that will require further investment, so it’s imperative that state aid remains available to ensure we have the infrastructure in place to meet future demand”
“The time is now,” declared Barriga. “Regional airports and airlines are part of the same ecosystem, and we have a huge opportunity now to revise the state aid guidelines. But we must work together to bring new, creative, more flexible tools in front of the commission to help achieve our objectives.”
Concluding that a more flexible and future-proof approach to EU state aid regulations is essential, panellists agreed on several key priorities. These include extending operating aid beyond the current 2027 expiry, providing targeted investment for greener infrastructure and technology upgrades, strengthening Public Service Obligations (PSO) regimes, and embedding climate and environmental goals in line with the EU Green Deal.
The consensus is clear: To achieve regional cohesion, sustainable growth, and equitable access, the EU and European countries must urgently rethink the expiry of state aid for regional aviation — before opportunities and communities are lost.
Image left to right: Simon Yarak, Oxera; Annabelle Lepiece, CMS Law; Michael Stanton-Geddes, ACI Europe; Fanny Charles, SEALAR; Ralf Schmid, Memmingen Airport; and Montserrat Barriga, ERA.
