French regional airports under threat of funding cuts

Some of France’s smaller regional airports could struggle to survive as mounting financial pressures are compounded by stricter EU rules on public funding, industry representatives warn.

They say regional airports are already facing rising costs and reduced state support, while many depend on funding from the state and local authorities to remain viable – or are likely to do so in years to come.

In its new aviation aid proposals, the European Commission wants to restrict investment aid for new facilities, extensions etc to airports handling fewer than three million passengers a year, down from the current five million.

The new rules would take effect from April 2027 and would also restrict operating aid – help with running costs – to airports with fewer than one million passengers a year, down from three million, potentially affecting Lille, Montpellier, Ajaccio, Bastia and Strasbourg.

Further changes expected from 2032 would mean airports handling between 500,000 and one million passengers a year also losing access to operating aid under these rules, potentially affecting Rennes, Tarbes, Brest, Figari and Biarritz.

Corsica and Brittany, both areas heavily reliant on domestic flight traffic, are thus especially vulnerable. Brittany is already suffering with flight numbers down 39% compared to the pre-Covid years.

Start-up aid to help launch new routes would also be banned.

Thomas Juin, president of the Union des Aéroports Français (UAF), has warned that the pressures threaten a network that plays an important role in connecting rural and less accessible parts of France.

He said: “There is a tendency today to pay no heed to the fact that the smallest regional airports – some of which have significant potential and momentum – may well, in the future, be unable to cover their costs and disappear as a result of the accumulation of taxes and the withdrawal of state support.

“So, the combination could lead to certain airports no longer being viable.”

Risk of disappearing

Mr Juin, who is also director general of La Rochelle airport, said other pressures include state closure of some air traffic control services and border checkpoints, growing safety and security costs, and councils repaying Covid-era loans, leaving less money to support airports. 

Major UK carriers are increasingly basing aircraft in European countries with more favourable tax regimes, hampering French airports, he said.

The increase in the TSBA tax on airline tickets as of last year is particularly disliked.

On top of this, the pending EU rules will in some cases further restrict access to local and central state aid.

Regarding investment aid, Mr Juin said Italy would be especially affected by the changes, as well as Germany, Spain and Greece.

“At present, France has no airports handling between three and five million passengers. But – there’s a ‘but’ – some airports will cross the three million threshold in years to come.

“We’re already very concerned about the airports in the overseas departments, because Réunion airport will soon reach three million passengers and probably also Martinique and Guadeloupe in the longer term.

“And in that case, it’s certain that these airports cannot cover their investment costs without financial support.”

Operating grants 

With regard to operating grants, none of the mainland airports that would be affected by the new threshold in 2027 currently needs them, Mr Juin said.

However, this is not the case for the overseas airports, which would be hit immediately. 

And with operating costs also rising in mainland France since the Covid pandemic, even in the short-term we may see some airports there needing to resort to operating aid, he said, and the situation will be worse with the proposed lowering of the threshold again from 2032.

Mr Juin said studies have shown that the passenger threshold for profitability rises over time, meaning a threshold that was around 500,000 passengers a few years ago could eventually rise towards one million.

“At present, we generally see that airports handling over 700,000 passengers do not use operating subsidies – that is the point at which operations become profitable. But Rennes, for example, is just a little over 500,000.

"I don’t have information on whether Rennes manages to break even [without aids] but the risk is – once again – with rising costs these airports will need this support in a few years’ time.”

He added: “We see the state and commission imposing new rules and requiring additional equipment that costs considerably more [eg. EES kiosks and fingerprint readers and the imminent arrival of ETIAS], so inevitably, over the years, security costs rise at every airport.

“So it is unrealistic to assume that revenue will be sufficient, with the same number of passengers, to cover all this.”

State funding

The new rules will not affect public funding for certain ‘public service’ routes, such as those deemed essential to link certain regions with the capital.

However, that does not prevent the state itself from axing such funding, as has happened at Castres this year, where there is a petition against the ending of state funding for an Orly route due to budget constraints.

This follows a similar decision by the Occitanie regional council.

The airport will not shut but will refocus on business aviation and military activities, the transport minister said.

A petition against the decision has attracted more than 7,000 signatures and states that the route is “not a privilege but a necessity, for the economy, employment and the future of the Tarn”.

Planning ahead

France has Europe’s densest airport and aerodrome network, sometimes claimed to be excessive.

However, Mr Juin said the state fails to understand the importance of airports not only for tourism but, for example, for pilot training, as well as for Canadair firefighting planes, water-bomber helicopters and mountain rescue services, and for military training exercises which are increasing due to the geopolitical situation.

He said France needs a better overall strategy to work out the best use for each regional airport.

He also called for a more coherent tax regime to make France’s airports more competitive.

Calls to reconsider

ACI Europe, which represents Europe’s airports, has also called on the commission to “fundamentally reconsider” the proposals, warning they risk “undermining regional air connectivity, widening territorial inequalities and fuelling anti-EU sentiment”.

It particularly opposes ending operating aid for airports of 500,000-plus passengers, saying many will still struggle with seasonal and volatile traffic, inflation and rising costs.

Director general Olivier Jankovec said this could leave some regions isolated. “A framework that makes it harder to sustain regional airports – or forces some to close – would damage local economies and the single market,” he said.

A European Commission spokesperson said consultation replies are being reviewed and the proposals are also being discussed with member states. They are expected to be adopted by the commission in the first quarter of next year.

She said the commission has always been clear that support for airports should be the exception rather than the norm.

“Allowing unlimited state aid to airports above that threshold would entrench structural inefficiency, distort competition between airports in the single market, and ultimately harm passengers and taxpayers.

“The question has never been about whether we should limit state aid, but how to do so in a way that reflects market realities and protects genuine connectivity needs.”

She said airports between  500,000 and one million should be profitable, but the commission proposes a transition period because many have not recovered pre-Covid passenger numbers yet.

Airports potentially affected

Airports falling under the planned restrictions include the following from 2027 or 2032: 

• Lille

• Montpellier

• Ajaccio 

• Bastia 

• Strasbourg

• Biarritz - Pays Basque

• Figari - Sud Corse

• Brest Bretagne

• Tarbes Lourdes

• Rennes 

• La Réunion

• Guadeloupe

• Martinique 

• Tahiti

Others could be affected in future years if their passenger number grow beyond 500,000, such as: 

• Perpignan

• Calvi 

• Carcassonne

• La Rochelle, 

• Toulon-Hyères

• Caen

• Béziers

• Limoges.