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AER takes part in WSED 2020

27 May, 2020 By Anne Henk Bloemhoff

The World Sustainable Energy Days (WSED) is an annual conference that takes place in Wels, Austria (Upper Austria). This year’s edition took place from 4-6 March. The WSED is a large event attracting at least 700 participants from 60 countries as well as a trade show that attracts over 100,000 people. AER and its delegates took part in the European Energy Efficiency Conference, taking part in the conferences in the Energy Efficiency Policy Conference, Green Financing Workshop and the Smart E-Mobility Conference.

AER invites you to fill out this EU-wide survey on Energy Efficiency. This survey should take no longer than 10 minutes to complete.

Energy Efficiency Policy Conference

During the conference, regional, institutional and industrial representatives provided their input on the topic of the EU Green Deal and how this would be done. For example, AER member region Upper Austria, which is an industrial region accounting for about 25% of all Austrian industrial exports (e.g. iron, steel, chemical industry) has a regional energy agency, OÖ Energiesparverband, that actively works to promote energy efficiency & renewable energy. Although the ambition of the European Green Deal is to reach a climate neutral EU wide by 2050, Austria’s ambition is to reach this climate neutrality by 2040. One of the main ways that this will be achieve in Upper Austria is through an increase of photovoltaic cells (solar power).

The European Commission were present during these conferences. Mr Rados Horacek from DG Energy gave a presentation on the European Green Deal.  This was a very timely presentation as the Commission had proposed the new EU Climate Law on 4 March. The law sets out a binding objective of climate neutrality by 2050, however in order to achieve this, the 2030 target also needs to be amended to 50-55% emission reduction. Additionally, there would be an assessment of national measures every 5 years by September 2023.

Mr Horacek stressed, in his presentation, the importance of  decarbonising of the energy sector as well as that buildings need to be more energy efficient. In order to achieve a climate neutral EU, there needs to be a larger share of renewables in final energy consumption. Additionally, it was found that buildings consume 40% of energy and 75% are energy inefficient. In conclusion, in order to achieve the EU climate objectives by 2050 (and 2030), decarbonisation of the energy systems is crucial. 

Green Finance Workshop

The Green Financing Workshop was held in the context of the PROSPECT project – a Horizon 2020 project aimed to encourage the exchange of knowledge and experience on innovative financing schedules used to implement sustainable energy and climate plans. During this workshop, different regional and local authorities showcased their lessons and experiences in how they were financing sustainable energy schemes. There were several presentations showcasing what they do. 

The energy agency of Upper Austria and the host of the Conference presented how the agency has a facilitation tool for scaling up of green finance. This facilitation tools helps identify the most promising projects and then to provide advice on technical and financial aspects, support in audits and guidance on procurement rules and contractual issues. 

The Province of Girona located in Catalonia worked with BeEnergi and brought technical support to municipalities and bundled sustainable energy investments. BeEnergi, for example, offers a SME to MESCO training course. A MESCO is a micro energy service company that specialises in maintaining public lighting and municipal buildings and in supplying renewable energies. They also provided technical assistance in qualified work. 

REScoop presented that some Belgian municipalities have a growing number of cooperatives where citizens are at the forefront in making the energy efficient projects happen. Rescoop which is short for renewable energy cooperative refers to a model where citizens jointly own and participate in renewable energy or energy efficiency projects. Members can share projects and given opportunities to buy the electricity at a fair price. 

The presentation by Litomerice in the Czech Republic showcased that the use of revolving funds to finance their projects. The idea is to reinvest the financial savings acquired through energy efficiency projects into new energy saving measures. It rewards departments for energy savings efforts by allocating a portion of the saved money to them. It was estimated between 2014-2017, 300.000 EUR had been saved due to this revolving energy savings fund. 

The last project was presented by SEM Energies Hauts-de-France, which showcased that the financing  through regional co-investment. The organisation is a regional development tool in the promotion of renewable energies. All renewable energy production projects except wind farm are eligible for financial support with typical financial volume available between EUR 100,000 and 1 mill. 

Smart E-Mobility Conference

On the final day of the conference, the topic switched to e-mobility including topics such as batteries, charging points and the EU Green Deal. Dr Gerhard Dell from the Regional Energy Agency of Upper Austria provided the Austrian context. In their region, for every 10 new parking spaces, there is also an obligation to foresee a charging infrastructure. There are both national and regional subsidies. The regional funding is for fast-charging stations in municipalities and intelligent charging stations in multi-family buildings.

Saki Gerassis from DG MOVE presented the strategies and policies for the development of sustainable mobility and transport. In his presentation, he noted that in order to achieve the climate neutrality goal, a 90% reduction in transport emissions is needed by 2050. In order to achieve and accommodate the increasing number of zero and low emission vehicles expected on the roads, 1 million public recharging and refueling stations are needed by 2025. 

However, a multimodal strategy and approach is needed. For example, the railway system is already electrified to a large extent and could aim at climate neutrality in 10-15 years. There is a push for biogas and -egas in maritime transport as well as electricity and low-carbon hydrogen in inland waterways and short-sea shipping. For the aviation industry, advanced biofuels and e-fuels are the only realistic option for decarbonisation. 

A very important point that was made by Jayson Dong from AVERE (European Association for Electromobility) was that not only is there a need for increase recharging and refueling stations but also fast charging stations. 

Conclusion

A very well attended conference with representatives from public, private and industrial sectors. All measures were taken in accordance in the prevention and spread of COVID-19. AER is very happy to take part and looking forward to next year’s edition which will take place from 24-26 February 2021. The call for papers have been opened with a deadline of 12 October 2020.

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Smart Specialisation Strategies: Enablers and Challenges in Rural Areas

4 February, 2020 By Shubhaangi Srivastava

AER 2020 Spring Committee Plenaries will be held in Covasna County, Romania from 11-12 March. This year the Committee 1 debate topic will focus on Smart Specialisation Strategies and its importance in rural development.

The Smart specialisation approach is a combination of Industrial, innovation and educational policies that advise the countries and regions to identify and choose a restricted number of areas to prioritize for knowledge-based investments. The goal here is to focus on their strengths and comparative advantages.

Smart specialisation in rural areas and the issues at stake

With Europe facing global competition and fiscal austerity simultaneously, it is necessary to focus resources on creating sustainable jobs and growth. For rural regions, the necessary competitive edge can be done by finding niches or mainstreaming new technology into the existing industry.

Three issues that are especially pronounced when working with RIS3 in a rural area are:
Firstly, finding the correct niche activity that promotes innovation and spillover effects. It is important to identify the resources in rural regions through the angle of present-day challenges and trends in society. The goal is to diversify the system through the generation of new options.
The second challenge relates to finding the resources and conditions that are needed to design effective policies. It is important to gather relevant sectors and actors present at the local level, in order to explore jointly the possibility of their contribution to each others growth activity. One should always remember the need to incorporate and explore the wider concept of innovation by S3.
The third major challenge is to effectively maintain the policy and monitoring system set in place. Capacity needs to be built in order to face the challenges and address the demands of the new generation.

Smart specialisation in action

While it may be challenging to develop smart specialisation strategies in less connected and more rural areas, regions have found creative ways to build their innovation strategies on assets in their territories. Examples range from developping the role of incubators to increase entrepreneurship and develop innovative digital sector companies, to connecting clusters or developping special agricultural products.

Typically, the Cohesion region Centru in Romania, which includes Covasna, incorporates Spa tourism as a part of smart specialization strategies. Covasna’s special asset in this context is a spa resort recommended for cardiovascular disease.

Where do we stand in 2020?

In the EU’s Smart Specialisation Platform, S3P, more than 200 regions have registered, from 26 different countries. A joint research group has been formed to provide concrete support to RIS3 implementation in lagging regions. Targeted support is also provided for maritime activities, digital growth, and collaboration with higher education.

It has been estimated that by the end of 2020 the smart specialization strategy will bring up to 15,000 new products to market, create 140,000 new startups and create 350,000 new jobs in Europe. Over 120 different smart specialization strategies have so far been developed in Europe with EUR 67 billion set aside to fund such initiatives.

Photo by Ivan Bandura on Unsplash

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Your opinion on State aid for regional airports

5 July, 2019 By Norina Haubold

Are you interested in the future of regional airports? Take part in an EU consultation and give your opinion on the use of State aid for smaller airports. The participation is open until 31 July 2019.

AER spokesperson on regional airports Roger Estefors is kindly asking AER member regions, to answer a consultation on the 2014 Aviation Guidelines and particularly the State aid rules within the aviation sector. The consultation is conducted by the Directory-General Competition (DG Competition) of the European Commission.

Developments of the State aid regulations

In January 2019 DG Competition announced that they were going to prolong the validity for the General Block Exemption Regulations (GBER) from 2020 until 2022. These regulations today include State aid to some regional airports.

At the same time, DG Competition also announced the start of evaluations of existing State aid rules in roughly ten different areas. Among them are operating State aid to airport included.

The current EU regulation concerning State aid in the Aviation sector was adopted 2014, the previous and first one was adopted 2005. The present regulations are valid until April 2024.

In March 2019 DG Competition announced their intention to carry out a Fitness Check for analysing the relevance, effectiveness, coherence and EU-added value of the State Aid rules within the sector of aviation and regional airports. The information required would be collected through different instruments such as public consultations, an external study, and the analysis of case practice.

What is important in the aviation sector?

DG Competition would like to investigate if the present regulations are fit for operating rules to support regional development in combination with limited distortions of competition. Formally, the three most important questions within the aviation sector to be answered are based on the following:

  1. Whether the transition period (2014 – 2024) provided for the phasing out of operation aid to airports in the Aviation Guidelines is adequate;
  2. Whether the categorisation of airports provided for by the Aviation Guidelines to establish the need for operation aid to airports is suitable, which means whether the thresholds in the Aviation Guidelines are fit for purpose;
  3. The contribution and impact of regional airports as a part of regional development.

Need for feedback

DG Competition are very clear in their statement about the importance of receiving feedback from the stakeholders within the aviation sector for the coming work with the revised Aviation Guidelines, particular concerning the State aid issue.

In Roger Estefors’ communication with the Aviation Evaluation Team at DG Competition, they are describing their task as following:

“In this process, we are trying to understand in how far the Guidelines have been effective in contributing to the initial policy goals which were fair competition, whilst recognising the importance of accessibility and economic development of regions. We would be grateful if you would take the time to provide answers to the consultation. Your knowledge inputs are very valuable to us”.

More information and participation in the consultation.

Photo by Alexander Mils on Pexels.

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AER at Regional Airports Conference in Naples

26 April, 2018 By Editor

AER expert on regional airports, Roger Estefors has been invited to speak at a panel on “Changes in airline strategies and their impact on regional airports” at the ACI Europe’s 11th Regional Airports’ Conference & Exhibition. Roger Estefors provides members of the AER Working group on Transports and Mobility with regular updates on changes in legislation affecting the ability of regions to support their regional airports and indeed their connectivity. In the below article, he shares insights on the upcoming conference, which will take place from 14-16 May in Naples (IT).

AER has been contributing to the ACI Europe events for the last five years. From an AER perspective it is of great value to have the opportunity to take part in an event were a broad representation of European Regional Airports are present. The connections and the information available at these events provide elements to  address questions such as development and business models, regulations and threats or opportunities for the AER member regions in the management of their own regional airport.

This year’s programme feature a broad spectrum of current issues and addresses the strategic pillars of dynamic regional development. The event will also host the 27th meeting of ACIs Regional Airports’ Forum, a most active group created in 2006.

Among the items to be discussed we can notice that Brexit will be on the agenda as well as the implications for regional airports with a high percentage of British passengers.

Another item on the conference agenda, which is relevant to many AER regions with smaller airports, is the degree of benefits from implementation and use of remote technologies.

One of the sessions during the conference will focus on the effects on regional airports due to the shift within the more dominating airline companies’ strategic thinking. Notable is that large airline groups continue their consolidation. LCC (Low Cost Airline) Companies such as Ryanair, in the first line, are now changing their strategy on which airports they serve. The dynamic effects of these shifts in strategies entail an increasing risk for the smaller players to be outnumbered. Further developed business models by the dominating LCC companies towards Long Haul LCC in combination with new and more efficient regional aircrafts will change route dynamics.

Airport Council International Europe, ACI Europe, represents over 500 airports in 45 European countries. The member airports facilitate over 90% of commercial air traffic in Europe with 2 billion passengers, 20 million tonnes of freight and 23.7 million aircraft movements in 2016. The member airports contribute yearly to the employment of 12.3 people, generating some € 675 billion GDP in Europe.  ACIs European operations are executed from its office in Brussels and  its mission is primarily based on airport operators of all sizes, along with national airport associations, educational establishments and world business partners.

 

 

 

 

Roger Estefors, from Västerbotten (SE), is the expert on regional airports for the AER Working Group on Transports and Mobility.Follow AER!

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Connectivity: AER at Smart Airports in Germany

18 October, 2017 By Johanna Pacevicius

AER was invited to contribute to Smart Airports in Munich, a series of conferences about the role, evolution and future of airports. Martin Tollén, Chair of the AER working group on Transports & Mobility shared insights on growth, social responsibility and sustainability during the first day conference “Aviation & Economic Development”. His presentation on regional connectivity and competitiveness provided a much needed regional perspective on this topic since all other presentations and speakers were focused on national airports and their contribution to national economic growth.

The topic

The topic of regional airports has been dealt with for several years within the AER working group on Transports & Mobility as it is a key element of regional connectivity as demonstrated by the SEO report on the role of regional airports in a future transportation system.

The mission

One of AER’s missions is to be the voice of the regions in Europe. In that role, AER has worked with the issue of state aid and financing of regional airports for many years, often in cooperation with ACI – Airports Council International. The reason for this involvement lays in the fact that many AER members have smaller airports which might need support in order to maintain operations.
Because politicians are real people too, they also have “real” jobs. Martin Tollén is a politician in Region Östergötland (SE), and when he is not working with politics he is a risk manager at the defence and security company Saab. While Saab has a lot to offer also in the airport industry, Martin Tollén spoke in Munich exclusively as a representative for AER, not for Saab.

Regional attractiveness & aviation

The European Commission launched a comprehensive strategy for the European aviation sector in December 2015, stating that Aviation is a strong driver of economic growth, jobs, trade and mobility for the European Union. Airport infrastructure availability is a major determinant in the location choices of large firms’ headquarters in Europe. Connectivity, however, cannot be taken for granted. Airport connectivity in Europe varies significantly between major hubs on the one hand offering hundreds of destinations and small regional airports on the other with only a few. The Chair of the AER working group on Transports & Mobility underlined the crucial role of regional airports for regional development and shared the experience of his own region:

My region, Östergötland is a good example of the importance of smaller airports for regional competitiveness. From our two airports we have three daily flights to Amsterdam and two to Munich. That was enough for Toyota Material Handling to locate its European head office close to its plant in Östergötland.

Around Linköping University, small but fast growing high tech companies have emerged. They have a wealth of possibilities but few resources. With few employees they cannot afford to spend most part of a day in a car or on a train travelling to and from one of the larger Scandinavian airports. If it weren’t for the regional airport, many of these companies would have to leave the region.
Regional airports make it also easier to visit large companies such as Siemens, Saab, Sectra, Ericsson and of course, Linköping University.

A resilient Energy Union

The future competitiveness of the European air transport sector and its environmental sustainability go hand-in-hand.

Multistakeholder collaboration

In line with the Energy Union agenda, an important contribution to the reduction of aviation’s environmental impacts will come from current research and development actions for innovative “green” technologies, including the development and market deployment of advanced biofuels. EU programmes support the modernisation of air traffic management and the reduction of the impact on the environment. Clean Sky, the largest European research programme for the development of cutting-edge technology aimed at reducing CO2, gas emissions and noise levels produced by aircraft is funded by the EU Horizon 2020 programme. In this context regional stakeholders in Östergötland have agreed on a Memorandum of Understanding. Moreover, the association for Sweden’s regional airports has committed to achieve of fossil free domestic flights in 2030. The transformation to fossil free fuel and a climate neutral flights requires multistakeholder engagement.

Efficient infrastructure

Urbanisation puts a pressure on the infrastructure in Europe’s larger cities where most of the major hubs are located. Regional airports present a possibility to reduce that pressure around the major hubs by spreading passengers on more nodes. Consequently, the resources which would have been needed to solve infrastructure problems in larger cities, can instead be used for other purposes. This makes it possible to create growth in a larger area and support the creation of a more robust society.

Preparing for the unforseen

As a risk manager Martin Tollén always looks at what lays ahead. Hi job is to inspire managers to prepare for the unforeseen. What about regional aviation and connectivity? The below two real-life experiences illustrate the idea that disruption often comes from places it is not expected.

Banking: who is going to be the next challenger?

A chief executive of one of the major Swedish banks was recently stating how little he worried about the competition from other banks:

…they are doing the same thing as we do and we just need to be a bit better than them

He wasn’t worried about competitors trying to cherry-pick parts of what banks are offering either. So, what kept this banking executive awake at night? It was completely new competitors transforming the industry itself. Goggle, Über, Apple have recently been mentioned as future partners for the airport industry. If they become the new competitors, how will the market look like? What products will be offered to clients?

Ice barons & refrigerators

In New England in the 1880th, Ice barons harvested ice from lakes during the winter and shipped it all over the world.

Nothing can threaten our success, the world will always need ice

They might have been aware that the refrigerator was invented a few years earlier, but they didn’t realise the impact on their own business.

The Chair of the AER Working Group on Transports & Mobility therefore encouraged the audience to reflect about challengers in a broader way and asked attendees: what are your refrigerators?

Photo by Deborah Kunzie on Unsplash

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ACI Regional Airports’ Conference & Exhibition

8 May, 2017 By Editor

The Airports Council International Europe (ACI EUROPE) 10th Annual Regional Airports’ Conference & Exhibition will take place from 15 to 17 May at the Cork Airport in Ireland. This year, the event will attract over 200 delegates from over 25 different countries and 25 different airports and airport operators. Three exciting days to exchange best practices, discover latest trends and enjoy experts opinions!

Conference of opportunities

AER is once again supporting ACI EUROPE! Indeed, regional airports play an important role in building up regional development. Improving the regions’ connectivity and outreach, airports are truly a springboard for regional economies.

For the participants, the event is especially relevant to share knowledge, good practices and discuss key challenges facing the aviation industry. Therefore, it is a great networking opportunity!

By joining, AER members will get the chance to benefit from:

  • Being presented as a supporter of the ACI EUROPE’s Regional Airports’ 2017 Conference & Exhibition
  • Two free delegate passes to attend the conference
  • Reduced conference rates for your members
  • 150-word organisation profile on the event website & in the official Event Guide
  • Organisation branding  on all marketing and promotional material including displayed in the Conference room, on conference website with corresponding links and on conference and exhibition signage at the official venue

Practical information

For further details, please contact ACI or the AER Secretariat.Follow AER!

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AER/SEO new agreement to foster regions’ connectivity

18 April, 2016 By Agnese Pantaloni

AER is happy to launch a new partnership agreement with SEO Amsterdam Economics. The partnership enables AER members to take advantage from SEO’s in-depth knowledge of regional connectivity analysis. SEO’s service includes a connectivity scan, a benchmark with competing regions, an analysis of the strong and weak spots of a region’s connectivity and ways to improve a region’s connectivity.

SEO was founded in 1949 as a research institute of the Faculty of Economics at the University of Amsterdam and became legally independent from the University in 1980. It carries out applied economic research on behalf of the public and private sectors which can make a major contribution to the decision-making process of regions. SEO’s team consists of highly qualified experts within the fields of aviation economics, regional economics, econometrics and operations research.

Connectivity is a key factor to foster the regions’ competitiveness, in terms of attracting business, increasing the number of incoming tourists, enhancing social development, increasing employment figures and growing consumer welfare. Given the economic importance of being connected and being accessible, comprehensive insight into your region’s international connectivity performance is indispensable.

AER and SEO would like to enable regions to get an assessment service regarding their connectivity and accessibility, which can drive their regional development and competitiveness. To this aim, SEO provides a professional custom-made connectivity analysis and benchmark for AER members, which include:

  • A scan of your region’s connectivity;
  • A benchmark of your region’s connectivity with a selection of competing European regions of your choice;
  • An analysis of your region’s connectivity by transport mode;
  • Identification of so-called “white spots” of your region’s connectivity: underserved regions/ opportunities;
  • Advise on how to improve your region’s connectivity

The AER/SEO partnership has been officially presented to members at the Spring Committees Plenaries in Timis (RO) within the Working Group on Transport & Mobility and got positive feedbacks and interest from participants.

SEO is available to get in touch with regions and to provide additional information on its connectivity service.

Contact person:

Joost Zuidberg
E-mail: [email protected]
Phone: +31 20 525 1659
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Reflexion on aviation

18 December, 2015 By Editor

Roger Estefors, member of the Working Group on Transport and Regional Airports, shares some reflexions following the new proposal made by the European Commission for an aviation strategy in Europe:

The entire aviation sector in Europe has gone through a transformative process from 1986 until 1992 when the Third Aviation Liberalisation Package was agreed on. The process in itself was a culmination of liberalisation steps to create a single internal European market in aviation across the range of economic activity.

The process in itself meant a tumultuous time for Europe’s state-controlled airlines to transform themselves into actors in a free market with access to all Member State’s airports. The process covered a period when previously state owned airliners, so called Flag Carriers (FC), transformed into alliances alternatively merged with other companies or simply disappeared from the market. The period also characterised a shift in the structure of the passengers and their need of alternative carriers.

This opened up a market for existing small companies or newly established companies to adopt a North American concept of low service and ticket price approach. The transformation into an open market enabled a much broader population to travel by air due to the formation of a variety of new airliner named Low Cost Carriers (LCC). The dawning era of the LCC operators opened a window for European regions, looking for possibilities to increasing their connectivity to attract tourism, support the local industries and other stakeholders. More than 25 % of all the passengers within the EU are today travelling with LCC airliner registered in the EU.

The establishment of the LCC companies have over time created some problems in connection to state aid questions and regional efforts to attract LCC companies. New airports have been constructed or old ones have been modernised or enlarged in conflict with EU Guidelines and neighbour airports. The legal handlings of these abuses or mistakes have mostly been manageable by the Commission.

The presentation of a New Aviation Strategy for Europe gives a good opportunity to make reflexions over the difficulties politicians struggle with when it comes to questions within an international market characterized by fully state controlled players outside EU on one hand and on the other hand EU based private or state owned players acting within a free home market with access for non EU players flying in and out of EU.

In the documents that relate to the importance of the EU aviation sector, the number of employments directly related to the aviation sector is estimated to somewhat between 1.4 and 2.0 million jobs. The over all multiplying effect indicates that approximately 5 million jobs exists as a result of the aviation sector.

One of the reasons to launch a New Aviation Strategy is the ambition to keep all the jobs associated to the Aviation industries and act in a way that ensures growth and new jobs. One obstacle can be found in the debate concerning state aid which leeds to unfair competition, primarily from the Gulf carriers, such as Emirates, Etihad Airways and Qatar Airways. The disturbance in the market and the risks involved affecting the conditions for the European aviation industries are officially outspoken by the Lufthansa Group in terms of ”The aviation policy of the UAE and Qatar are true game changers, putting capacity in the market at prices that airlines working under normal market conditions cannot reasonably match. This has led to a radical shift of market shares and connectivity from Europe to the Gulf and this process has only started” The problem at hand is not exclusively related to the Gulf Carriers. New destinations and other competitors are in the stage to move forward. The problem requires a solution that inherently is a problem.

From a regional perspective, it is apparent, that significant disruptions in the destination network for EU airliners caused by unfair competition indirectly harms the prospects for maintaining acceptable connectivity for the regions.

To know more about the AER working group on transport and regional airports, do not hesitate to contact Johanna Pacevicius, policy and knowledge transfer coordinator.


Roger Estefors, Västerbotten (SE)

Article by Roger Estefors.

Roger comes from Vasterbotten (SE) and is a member of the Working Group on Transport and Regional Airports, within the AER Committee for Economy and Regional DevelopmentFollow AER!

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New aviation strategy for Europe

18 December, 2015 By Editor

At the beginning of December Violeta Bulc, European Commissioner for Mobility and Transport, presented a New Aviation Strategy for Europe. The communication from the Commission states three focus areas.

The first part of the strategy covers the aim, on guaranteed equal conditions, to improve market access with third countries in combination with investment opportunities. The second part lays out the ambition to actively promote measures to overcome capacity gaps in the air and on the ground in combination with increasing efficiency and connectivity. The third part identifies the possibilities of shifting to a risk and perfomance approche to maintaining high EU safety and security standards

One, out of many other, driving forces that has been forwaded from the Aviation Industry to the Commission is the debate concerning state aid witch leeds to unfair competition, primarily from the Gulf carriers, such as Emirates, Etihad Airways and Qatar Airways. The same pattern can also be found in emerging aviation markets such as China, Brazil and Turkey. The result of this unfair competition is that the Airliners inside the EU are losing money and market shares.

The Commission’s Aviation Strategy mediates an ambition to find solutions for the coming years that supports the development and expansion of the overall European Aviation industries. The strategy also covers significant measurements to secure the passengers safety in respect to terrorism as well as to the working conditions among staff members at airports and among flight operators.

Despite the outcome of the European Strategy it is unavoidable that Regional Airports will be affected by the onward development in the aviation sector. Initially there will be increasing costs for the adoption of the future safety and security measurements. The new competition pattern that originates from emerging markets like China will affect European regions in a negative direction, in particular concerning connectivity. On the regional level, measurements must be taken to outbalance or at least, to ease the consequences due to the shift in the markets and competition structures to come.

The working group on transport and regional airports will continue representing the regional interests in this issue. To know more about this working group, do not hesitate to contact Johanna Pacevicius, policy and knowledge transfer coordinator.

Read more background information and some reflexions by Roger Estefors on this issue.
More about the European Aviation Strategy.


Roger Estefors, Västerbotten (SE)

Article by Roger Estefors.

Roger comes from Vasterbotten (SE) and is a member of the Working Group on Transport and Regional Airports, within the AER Committee for Economy and Regional DevelopmentFollow AER!

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Airports & Regions welcome fresh clarity on EU State Aid Rules

20 February, 2014 By Editor

Brussels, Bruxelles-Capitale (B), 20 February 2014

Following a 2-year review process, the European Commission (EC) today released its new State Aid Guidelines for the aviation sector, which will shape the public funding of EU airports in the years ahead. European airport trade body ACI EUROPE, together with the Assembly of European Regions (AER) generally welcomed the fresh clarity that these Guidelines should deliver, but also expressed concern about their medium-term impact on regional airports and connectivity.

Today, European airports are operating in a highly competitive market, yet smaller airports are structurally unable to sustain themselves. This is due to a combination of high fixed costs, limited access to non-aeronautical (commercial) revenues and lower yields compared to larger airports. As a result, clearer rules have long been needed to allow these airports to receive support where really necessary – particularly given it was widely acknowledged that the preceding Guidelines could not be enforced effectively.

The issue of State Aid is a difficult one, in this context. It is essentially a balancing act between limiting distortion of competition and market developments – the EC fully recognises that airports compete – versus the need to safeguard economic activity and social inclusion by ensuring regional infrastructure remains intact. The unparalleled connectivity that an airport can bring plays such an instrumental role in attracting and retaining economic growth – it cannot be omitted from the EU’s growth and jobs strategy.

Olivier Jankovec, Director General, ACI EUROPE commented “European airports compete tooth & nail to retain and attract air services and these much awaited new Guidelines provide a level-playing field upon which to do so. As well as serving the industry, these Guidelines should be implemented in a way that better secures the many economic and social benefits associated with air access in the EU. Hopefully, they will also bring an end to the squabbling between the different types of airlines, as the real world parameters of these new rules become clearer in the months ahead.”

Operating Aid…& 2019

The most contentious aspect was the EC’s initial intention to curb operating aid for all airports with more than 200,000 passengers per annum (ppa) after a 10-year transitional period. This has been reconsidered and the Guidelines now provide for a special regime for airports with up to 700,000 ppa.

However, the EC has fallen short of providing the long-term legal certainty needed for these airports and their communities – as it intends to reassess this stop-gap measure in 5 years’ time. Operating aid for smaller airports remains the most consequential element of the Guidelines, with grave repercussions for regional economies, if the wrong choices are made.

Jan Owe-Larsson, President East Sweden Region (SE), Chairman of the AER Working Group on Transport and Regional Airports and Mr. Jankovec added “Over the past 2 years, the Commission’s initial proposal has evolved and the new Guidelines it has released today better reflect the economic realities of operating a small airport. They also recognise – at least for the time being – that closing down these airports would damage connectivity and kill regional communities not only in remote & peripheral regions, but across Europe.”

They also cautioned “That said, those structural & financial challenges that regional airports face today are still going to be with us in 2019 and if anything, will have intensified. We already know that regulatory-induced costs are going to increase for airports*, while newly permitted levels of operating aid will stand at just 80% of current operating funding gaps. When decision-time comes around again, we will simply not be in a position to get this wrong.”

Investment Aid

On funding for airport development & modernisation projects, the right balance has been achieved and both ACI EUROPE and AER expressed their support for the EC approach based on decreasing aid intensity, as air traffic grows.

Moreover, further improvements of initial EC proposals means that airports should be better placed to meet the needs of the travelling public in the years ahead. Airports with 3-5 million ppa now have greater investment opportunities than the originally-proposed Guidelines allowed. And the possibility now remains for some public support for very large greenfield airport projects – a crucial change if Europe is to remain a player in the global race for air connectivity. Aviation is not limited to European borders and in every other continent, airport infrastructure can and frequently does receive considerable public financing. This is part of national economic strategies aimed at boosting connectivity – and indirectly supporting airlines.

Mr. Jankovec added “The new framework on investment aid is of major significance and here the Commission has clearly taken note of the unique value airports bring to society. As EUROCONTROL has repeatedly warned, Europe is facing a looming airport capacity crunch with 12% of demand for air transport expected to be unaccommodated in 2035. In order for Europe to stay globally relevant, we should be able to address airport investment as flexibly as our peers in other world regions.”

Start Up Aid

There has been significant media interest in the proposals concerning aid by regional airports and/or local public authorities to incentivise airlines to start up new routes.

On this, Jankovec commented “We like the thought and focus which the Guidelines give to the regulation of start up aid to airlines. However, the implementation and enforcement of these new rules will ultimately determine whether clarity and simplicity have been achieved. With this in mind, we eagerly await the precedents set by forthcoming decisions on individual cases.”

Intermodal Competition

It is worth noting that other sectors within Transport, such as rail in particular, do not have to operate under such restrictive rules on public financing. In the wider scheme of things, this puts aviation at a competitive disadvantage, while allowing the rail sector over €30 billion in public funding each year.

* The new safety regulatory framework established by the European Aviation Safety Agency (EASA) will include new requirements and duties for regional airports and thus impact their operating costs.

** This refers to the notified state aid to the rail sector in 2011, according to the European Commission.

ACI EUROPE is the European region of Airports Council International, the only worldwide professional association of airport operators. ACI EUROPE represents over 450 airports in 44 European countries. Member airports handle 90% of commercial air traffic in Europe, welcoming over 1.5 billion passengers, 18 million tonnes of freight and more than 20 million aircraft movements each year.

For more information: [email protected] AER!

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AER position paper on regional airports

9 September, 2013 By Editor

Since 2001, when it published a report on regional aviation, AER has committed itself to defend and
promote the role of Regional Airports as a tool for regional economic development and citizen
mobility. Under the leadership of the Working Group on Regional Airports, the AER is closely
following the European Commission’s decisions regarding the revised guidelines on state aid for the
aviation sector, as these have a direct impact on Europe’s regions.

While AER supports the European Commission’s aim of promoting fair competition, efficiency in
public financing and attracting more private investment, we are concerned about the negative
impact the new rules will have not only on Regional Airports, but also European regions. Should the
guidelines be published according to the European Commission’s current proposal, the new rules
may seriously infringe the ability of Europe’s regions to organise their transport services and
therefore define coherent territorial development strategies.

The following paper is thus a response to the consultation on the revised ‘EU Guidelines on State Aid
to Airports and Airlines’.

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Low noise – Low-fare – High impact Regional airports as factors for economic growth

13 December, 2006 By Editor

Today, the Assembly of European Regions (AER) gathered over 50 stakeholders to discuss the importance of regional airports and the success factors for their development. These include the role of low-fare airlines, the potential offered by public-private partnerships, successfully responding to environmental and social challenges and the role of European rules on state aid.

Onno Hoes, President of the AER ‘Economy and Regional Development’ Committee and Regional Minister of Noord-Brabant (NL) emphasised the economic and social benefits that Eindhoven Airport brings to his Province of Noord-Brabant. “This is why the Province is one of the shareholders in Eindhoven Airport. Good international accessibility is a sine qua none condition if a region is to become and remain the place to be for knowledge institutes, high tech companies and innovative suppliers. Efficient connections to other top innovative regions in Europe are of the utmost importance. It is also obvious that such a flourishing regional airport is a crucial element for social cohesion, as it contributes to employment in the region,” Mr Hoes stressed.

AER Secretary General Klaus Klipp underlined the interest of low cost airlines for regions, based on the principle that business brings business. “Once you have a low cost airline on board, surely more will follow. Not only airlines but also distribution centres, whole sale companies etc. During this conference it became clear that there is a strong potential for regional airports to contribute to the economic growth of regions. This is a highly specialised business that needs to be better explained. Certainly at the level of the EU institutions it is essential to listen to the very specific needs of regions and their airports.”

Bart de Boer, General Manager of Eindhoven Airport concluded “The growth of Eindhoven Airport is crucial for the Province of Noord-Brabant. All stakeholders involved in the airport business acknowledged that their policies should also address negative environmental effects in a responsible and innovative way, without however compromising the development of the regional aviation as such.”

For more information: [email protected] AER!

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The AER meets its regions: Samara illustrates the benefits of cooperation

19 October, 2006 By Editor


Samara (RUS), 19 October 2006

“When people heard we were holding our Bureau meeting in Samara, Russia, some asked us: why is the Assembly of European Regions going so far?” smiled Riccardo Illy, President of the AER and President of the region Friuli Venezia Giulia-I. “Our answer is simple. This is the role of the AER: to be the link between all European Regions, in particular those which are at the borders of Europe and lesser known. This is exactly the reason why the AER should go to all its member regions. Our mission is to place regions in the spotlight and to showcase their capacities and potential, in particular if they are as dynamic and successful as Samara.”

AER President Illy met with Konstantin Titov, Governor of the Regional Government of Samara. Together, they discussed the stunning economic development of Samara and the ongoing cooperation with the AER. Samara accounts for 2.2% of the Russian population and contributes 2.4% of the GDP. “Samara’s potential is impressive: it is already a net contributor to the budget of the Russian Federal State. In the context of the European Union, this would place Samara on a footing equivalent to that of states such as Sweden or the UK, who are also net contributors to the EU budget,” stated AER President Illy. With highly developed and specialised industry (including automobiles – 75% of all Russian cars are produced here – jet engines, aviation, chemical, aeronautic – all Russian satellites and missiles are produced in Samara, space stations) and 14 universities, Samara has a high innovation potential. Presidents Titov and Illy discussed further cooperation with other regions, universities and enterprises in order to further stimulate Samara’s development.

“The cooperation initiatives of the AER and its member regions are also a political tool which, in the context of Russia, can contribute to strengthening democracy and can facilitate European integration. This is why we will pursue our collaboration with Samara and our other Russian member regions, and we hope that many others will join the AER family soon, both to boost economic development in Russia and to guarantee stability” concluded President Illy.

The AER political Bureau approved the 2007-2012 strategic plan that reorganises the AER structures and puts a stronger emphasis on economic issues. The strategy will be adopted by the General Assembly, taking place on 9th-10th November 2006 in Illes Balears-E.

For more information: [email protected]

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We need exemption of small airports from EU Guidelines

2 March, 2005 By Editor

Riccardo Illy, President of the Assembly of European Regions (AER), meeting today with the President of the European Commission José Manuel Barroso, welcomed the new EU guidelines on aviation and regional airports, as well as the Commission initiative to launch a consultation before adopting a final regulation. ‘The AER, who called for the publication of EC guidelines in order to remove the legal uncertainty created as a result of the EC decision in the Ryanair/Charleroi case, recognises that the new guidelines adopt a flexible approach, acknowledging the vital role of regional airports for citizens’ mobility and the economic development of many regions of Europe’ he said. ‘More specifically, they clarify the role of national, regional and local authorities in the provision of key infrastructure and offer an improved set of conditions for public funding to assist the development of regional airports and interregional air connections’ he highlighted.

However, Riccardo Illy pointed out that ‘small airports, e.g. up to one million passengers a year, should have the choice to decide which measures they want to take to attract airlines. A European guideline should not reduce their bargaining power when negotiating with airlines. This may also create a legal problem for existing agreements, in larger airports, usually concluded for an average duration of 10 years’.

On behalf of the AER and the European Forum of Regional Airports (FARE), who share the same position, Riccardo Illy called upon the Commission President to ensure that such obstacles for the future development of regional airports and the obligation of prior notification of start-up aids, especially for small regional airports, are removed from the final regulation.

The exponential development of low-cost carriers in Europe has significantly contributed to the development of regional airports and of a network of interregional air connections, supporting citizens’ mobility, regional economic growth and job creation, as well as increasing the accessibility of peripheral regions in Europe. The new EU guidelines, currently under consultation, must aim at creating a favorable climate for further development of regional airports. To do so, they should not impose rigid rules regulating a market which is constantly evolving, but help to clarify the legal provisions regarding state aid in this field and reconcile the Market Economy Investor Principle with the need for the regions to secure their own development.

For more information: [email protected] AER!

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Thematic dossier n°7 on Regional Airports: The regions must be able to fly free – Autumn 2004

8 September, 2004 By Editor

Regional airports

Table of contents

  • Editorial by Onno Hoes Coordinator of the AER’s ‘Regional Aviation’ Group
  • The regions must be free to spread their wings!
  • Interregional flights looking for a skilled Community pilot
  • Why public-sector airports will not oppose the draft directive
  • Low-cost airlines help local economies soar
  • The AER is calling for a Power of Three

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