EU Approves €8.48m Greek Measure to Compensate Sky express for Covid Damages

The European Commission has approved, under EU State aid rules, a 8.48-million-euro Greek aid measure to compensate the airline SKY express in the context of the Covid-19 (coronavirus) pandemic.

Under the measure, the aid will take the form of a direct grant to compensate the airline for the damage suffered during the pandemic, specifically the period between 23 March and 31 October 2020, when travel restrictions were imposed by Greece and other countries to limit the spread of the virus. As a result of these restrictions, Sky express experienced a steep decline in traffic and profitability over this period.

After assessing the measure under Article 107(2)(b) of the Treaty of the Functioning of the European Union*, the Commission found that the Greek measure provides compensation to SKY express for damage directly linked to the pandemic. It also found that the measure is proportionate, as the compensation does not exceed what is necessary to make good the damage. On this basis, the Commission approved the measure under EU State aid rules.

* The Treaty of the Functioning of the European Union enables the Commission to approve State aid measures granted by Member States to compensate specific companies or sectors for damage directly caused by exceptional occurrences, such as the coronavirus outbreak.