State aid: Commission approves €6.8 million Greek aid measure to compensate Ellinair for the damage suffered due to the coronavirus pandemic

The European Commission has found a €6.8 million Greek aid measure to support Ellinair to be in line with EU state aid rules. This measure aims at compensating the airline for the damage suffered during the period between 18 March and 30 June 2021 due to the coronavirus pandemic and the travel restrictions imposed by Greece and other countries to limit the spread of the virus. As a result, the airline experienced a steep decline in traffic and profitability over this period. The aid will take the form of a direct grant. The Commission assessed the measure under Article 107(2)(b) of the Treaty on the Functioning of the European Union (TFEU), which enables the Commission to approve State aid measures granted by Member States to compensate specific companies or sectors for the damage directly caused by exceptional occurrences. The Commission considers that the coronavirus outbreak qualifies as such an exceptional occurrence, as it is an extraordinary, unforeseeable event having significant economic impact. The Commission found that the Greek measure will compensate  damage that is directly linked to the coronavirus pandemic. It also found that the measure is proportionate, as the compensation does not exceed what is necessary to make good the damage. The Commission therefore concluded that the damage compensation measure is in line with EU State aid rules. More information on the actions taken by the Commission to address the economic impact of the coronavirus pandemic can be found here. The non-confidential version of the decision will be made available under the cases number SA.62588 in the State aid register on the Commission's competition website once any confidentiality issues have been resolved. (For more information: Arianna Podesta – Tel.: +32 229 87024; Nina Ferreira - Tel.: +32 229 98163; Maria Tsoni – Tel.: +32 229 90526)