The Legal Impacts of COVID-19 in the Travel, Tourism and Hospitality Industry
34 the Temporary Framework, airBaltic is a systemically important company, there was no alternative of aid etc.), and authorised an aid package of EUR 250 million of capital increase. The amount of aid was actually reduced from EUR 286 million to the authorised level because the Commission questioned the proportionality and necessity of the higher amount. As the recapitalisation is the far most distortive form of aid in the TF, the application of Section 3.11 in individual cases always generated political debates about how much the State should keep large air carriers like Lufthansa 137 and KLM 138 alive with euro billions of public funds. Even though the Commission tried to attach strong safeguards to the application of TF 3.11 and incentives, these aid measures will have significant impact on the markets for years. 6.1.7. Aid for uncovered fixed costs Aid for uncovered fixed costs under Section 3.12 of the Temporary Framework (3.12 TF) was a late addition to the aid categories of the Temporary Framework, introduced with the fourth amendment as of 13 October 2020. Member States may grant aid to undertakings to cover their “uncovered fixed costs” 139 (essentially, their losses not covered by revenues and other resources, such as insurance or other aid) during any period between 1 March 2020 and 31 December 2021 (eligible period), provided that their turnover in the eligible period dropped by at least 30% compared to the same period of 2019. 140 Beneficiaries may not have been in difficulty at the end of 2019 (with the exception of micro and small enterprises). 141 The maximum aid intensity is 70% of the uncovered fixed costs (90% for micro and small enterprises), and after the fifth amendment, the aid amount may not exceed 10 million euros. 142 Member States can grant and pay the aid after the eligible period or before it, on the basis of projections in the latter case. If projections are used to calculate the uncovered fixed costs, the aid grantor is required to check the factual data later, when 137 State Aid SA.57153 (2020/N) – Germany – COVID-19 - Aid to Lufthansa 138 State Aid SA.57116 (2020/N) – The Netherlands COVID-19: State loan guarantee and State loan for KLM 139 Point 87(c) of the Temporary Framework. 140 Point 87(a) and (b) of the Temporary Framework. 141 Point 87(f) of the Temporary Framework. 142 Point 87(b) and (d) of the Temporary Framework.
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