Towards resilient and sustainable aviation : implications for competition and competitiveness

Abstract

The COVID-19 pandemic has almost forced the aviation industry to a halt in 2020, at least when it comes to the provision of passenger services: the number of active routes, as well as frequencies were substantially reduced whereas passenger volumes drastically declined. The impact of COVID-19 on aviation continues to be felt today, as the industry faces an uncertain recovery outlook. The Commission adopted several emergency measures to support the aviation sector during the pandemic. In particular, the Commission adopted a temporary framework for State aid rules in 2020, in force until 2022. Thanks to the massive State support approved by the Commission, the aviation ecosystem was able to stay afloat. However, this massive State support has also been asymmetric, as certain Member States have granted much higher amounts of aid than others.