State aid: Commission approves €9 million Spanish support to compensate Air Nostrum for damage suffered due to the coronavirus outbreak

The European Commission has approved, under EU State aid rules, a €9 million Spanish measure to compensate Air Nostrum for damage it suffered due to the coronavirus outbreak. The amount represents part of Air Nostrum's overall net losses during the period between 29 March and 23 May 2020, when its fleet was grounded as a result of the travel restrictions introduced by Spain and other destination countries to limit the spread of the coronavirus. Air Nostrum plays an important role in Spain's international connectivity and is the carrier for domestic remote destinations under public service obligations agreements. The airline is also crucial for regional connectivity, in particular in the Autonomous Community of Valencia. Businesses in manufacturing, commerce and tourism are heavily relying on this connectivity, especially for the economic recovery and viability of this region. The support will take the form of a direct grant. The scheme was approved 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 specific sectors for the damages directly caused by exceptional occurrences, such as the coronavirus outbreak. The Commission found in particular that the Spanish measure will compensate damage that is directly linked to the coronavirus outbreak. The aid will be granted before 31 December 2021, with a payment schedule to be established in the future. The Commission also found that the measure is proportionate as the compensation does not exceed what is necessary to make good the damage. On this basis, the Commission concluded that the Spanish measure is in line with EU State aid rules. The non-confidential version of the decision will be made available under the case number SA.58343 in the State aid register on the Commission's competition website once any confidentiality issues have been resolved.