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.

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