European Commission approves Greek aid measure for Ellinair

The aid amounts to 6,8 million euros

European Commission approves Greek aid measure for Ellinair

The European Commission has agreed to a Greek aid measure of €6.8 million to support Ellinair, as it complies with the European State aid rules.

This measure aims to compensate the airline for the damage created by the pandemic from March 18 to June 30 2021, due to Covid-19 and travel restrictions imposed by Greece and other countries to limit the spread of the virus.

As a result, the airline experienced a sharp drop in traffic and profitability. The aid will take the form of a direct grant.

The Commission has assessed the measure in accordance with Article 107 (2) (b) of the Treaty on the Functioning of the European Union (TFEU), which allows the Commission to approve State aid measures granted by Member States to compensate specific companies or sectors for damage caused directly by exceptional occurences, with Covid-19 beoing recognized as such.

The Commission found that the Greek measure would compensate for damage directly linked to Covid-19 pandemic. At the same time, it found that the measure is proportionate, as the compensation does not exceed what is necessary to repair the damage. The Commission therefore concluded that the compensation measure complied with EU State aid rules.

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