Best prices Special offers for members of the PWE book club The cheapest delivery

Dilemmas of Assessing and Maintaining States' Interventions in Liberalised Sectors Start-up through an example of the Aid for New Air Routes

Start-up aid seeks facilitate airlines' entry into new
regional markets. It is designed as an alternative to a
widespread, and combatted by the European
Commission, practice of offering advantageous discounts
of airport charges and various marketing contracts to air
carriers in exchange for entering a given regional market.
Start-up aid is designed to be time-limited and once
expired, the route is intended to become profitable and
thus the operating carrier would be economically
incentivised to remain on that market.
The research shows that airlines seeking to obtain
subsidies are not interesting to remain on the market
once state aid expires but are inclined to relocate their
operations in order to receive new start-up aid. This
brings up the question of how to perceive the
effectiveness of start-up aid in the light of the regulatory
challenge of using public funds as a stimulus for air routes
that intends to be commercially viable.

Download article
Keywords: State Aid; Start-up Aid; Regional Airports; Incentive Effect; Air Transport; Effectiveness of Law


Bacon, K. (2017). European Union Law of State Aid. 3rd Edition. Oxford: Oxford University Press.
Bishop, S. Walker, M. (2010). The Economics of EC Competition Law: Concepts, Application and Measurement, London: Sweet & Maxwell.
Bork, R. H. (1978). The Antitrust Paradox: A Policy at War with Itself, New York: Basic Books Inc.
Button, K. (2017). Wings Across Europe: Towards an Efficient European Air Transport System. Abingdon: Routledge.
Clark, J. M. (1960). Competition as a Dynamic Process. Washington DC: The Brookings Institution.
Elburz, Z., Nijkamp, P., Pels, E. (2017). Public infrastructure and regional growth: Lessons from meta-analysis, Journal of Transport Geography,
1(58) 1, s. 1–8.
Evans L., Nyssens H. (2010). Economics in State Aid: Soon as Routine as Dentistry? W: A. M. Mateus, T. Moreira (red.), Competition Law and
Economics: Advances in Competition Policy Enforcement in the EU and North America. Cheltenham, Northampton MA: Edward Elgar.
Fageda X., Gonzalez-Aregall, M. (2017). Do all transport modes impact on industrial employment? Empirical evidence from the Spanish Regions,
Transport Policy, (55), 70–78.

Fageda, X., Flores-Fillol, R. (2011) Air services on thin routes: Regional versus low-cost airlines. Institut de Recerca en Economia Aplicada Regio-
nal i Pública Working Paper, (23), 1–45.

Gerardin, D., Layne-Farrar, A., Petit, N. (2012). EU Competition Law and Economics. Oxford: Oxford University Press.
Gross, S., Lück, M. (2016). The Low Cost Carrier Worldwide. Routledge: Abingdon.
Holloway, S. (2016). Straight and Level: Practical Airline Economics. Abingdon: Routledge.

Huderek-Glapska, S. (2011). Wpływ portu lotniczego na gospodarkę regionu. W: M. Rekowski (red.), Regionalne porty lotnicze w Polsce — cha-
rakterystyka i tendencje rozwojowe. Poznań: Wydawnictwo Uniwersytetu Ekonomicznego w Poznaniu.

Humphreys I., Ison, S., Francis G. (2017). Airports’ perspectives on the growth of low-cost airlines and the remodeling of the airport-airline rela-
tionship W: L. Budd, S. Ison (red.), Low Cost Carriers: Emergence, Expansion and Evolution. Routledge: London, New York.

Hylton K. N. (red.) (2010), Antitrust Law and Economics. Cheltenham: Edward Elgar.
Jones, A., Sufrin, B. (2013). EU Competition Law, Text Cases & Materials. Oxford: Oxford University Press.
Kociubiński, J. (2014). Between lifeline services and transport of convenience: the model of public service obligation in air transport. European
Networks Law and Regulation Quarterly, 2(3), s. 232–243.
Kociubiński, J. (2017). Efekt zachęty w kontroli pomocy publicznej w prawie Unii Europejskiej, Europejski Przegląd Sądowy, 6, s. 13–19.

Kociubiński, J. (2018). European „ghost airports”: EU law failure or policy failure? The need for economic analysis in state aid law. Polish Year-
book of International Law 2017 (37), s. 163–183.

Kotler, P. T., Armstrong, G. (2017). Principles of Marketing, 17th Edition. Pearsons: Harlow.

Lorenz, E. (2001). The Butterfly Effect W: R. Abraham, Y. Ueda (red.), The Chaos Avant-Garde. Memories of the Early Days of Chaos Theory.
Singapore: World Scientific.
Morawski L. (1999). Główne problemy współczesnej filozofii prawa. Prawo w toku przemian. Warszawa: LexisNexis.
Nicolaides, P. (2009). The Incentive Effect of State Aid: Its Meaning, Measurement, Pitfalls and Application, World Competition, 4, s. 579.
Núnez-Sánchez, R. (2015). Regional public support to airlines and airports: An unsolved puzzle, Transportation Research Part E: Logistics and
Transportation Review, (76), s. 93–107.
Ortiz Blanco, L., Van Houtte, B. (2017). EU Regulation and Competition Law in the Transport Sector. 2nd Edition. Oxford: Oxford University
Peoples, J., Bitzan, J. (2017). The Economics of Airport Operations. Bingley: Emerald Publishing.
Postorino, M. N., (red.) (2011). Regional Airports. WIT Press: Southampton, Boston.

Ramos-Pérez, D. (2016). State aid to airlines in Spain: An assessment of regional and local government support from 1996 to 2014, Transport Po-
licy, (49), s. 137–147.

Recchi, E. (2015). Mobile Europe: The Theory and Practice of Free Movement in the EU. Basingstoke: Palgrave Macmillan.
Simon, H. A. (1955). A Behavioral Model of Rational Choice, The Quarterly Journal of Economics, (69), s. 99–118.

Smyth, A., Christodoulou, G., Dennis, N., Al-Azzawi, M., Campbell, J. (2012). Is air transport a necessity for social inclusion and economic deve-
lopment? Journal of Air Transport Management, 7(22), s. 53–59.

Truxal, S. (2012). Competition and Regulation in the Airline Industry. Puppets in Chaos. Routledge: London, New York.
Wensveen, G. (2015). Air Transportation: A Management Perspective, 8th Edition. Ashgate: Farnham.
Wróblewski, J. (1979). Zasady tworzenia prawa. Łódź: PWN.

Article price
Journal of Business Law 2/2020
As file to download
81.00 €
get subscription