EU launches state-aid probe into Air Nostrum fleet renewal

Air Nostrum’s fleet renewal, after the carrier was pledged up to E9m in local-government support on environmental grounds. The probe relates to the funding of 10 Bombardier CRJ1000s that Air Nostrum committed to acquire in 2017. “At this stage, the Commission has doubts that the total intended aid support of €9 million to Air Nostrum falls within the General Block Exemption Regulation (GBER) and complies with the guidelines on state aid for environmental protection and energy,” the Commission said, announcing the investigation Tuesday. The Valencia regional government granted Air Nostrum a subsidy of up to E3m in 2018 and intends to grant up to a further E6m in 2019-2020. Spain is claiming an EU state-aid exemption on environmental grounds, because the funds are being used to renew Air Nostrum’s fleet with more efficient aircraft. If certain conditions are met, EU member states are allowed to support measures that have a positive impact on the environment, but the Commission questions whether the state aid actually incentivized Air Nostrum to take more fuel-efficient aircraft, or whether it would have placed the order regardless of the aid.<br/>