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.

Proposed changes to EU state aid rules could make it harder for some to receive public money towards investment or running costs, with new restrictions expected to take effect from April 2027.

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.”

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 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.

Risk of disappearing

Mr Juin, who is also director general of La Rochelle airport, recently joined the mayor of Le Touquet in writing in Les Echos that “there is a risk of regional airports disappearing, carrying with them decades of territorial cohesion and French aeronautic power”, citing “withdrawal of state support, growing financial constraints and suffocating regulatory burdens”.

Mr Juin told The Connexion they were referring to issues such as the closure of certain air traffic control services and border checkpoints and increasing requirements for airports to pay their safety and security costs.

He added: “Above all, there is also the fact that airlines – particularly the major British ones – are increasingly basing their aircraft in other European countries where the tax regimes are more favourable.

"And that is hampering opportunities for redevelopment in France.”

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

On top of this, he said, local councils are still repaying Covid loans, limiting their budgets to help airports – while the pending EU rules will in some cases 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.”

He said both operating and investment costs are increasing and are especially high in the overseas departments, where the cost of living is higher due in part to greater difficulties in obtaining supplies.

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 considerably in mainland France, particularly security costs since the Covid pandemic, we consider that even in the short term some mainland airports may need to resort to operating aid.

“So, we do not want a change to the three million threshold.

“As for the plan to restrict permission from 2032 to airports with less than 500,000 passengers, that’s simply not realistic.

“Given rising costs – particularly security and environmental costs – we do not consider it realistic to assume that in a few years’ time, by 2032, airports in the 500,000 to one million range will be able to cover their costs.”

He 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 aid], but the risk is – once again – that 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.”

With regard to route start-up grants, he said they are little used because they are too complex to obtain, and UAF is calling for them to be simplified rather than abolished.

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”.

Looking ahead, Mr Juin said UAF is also worried about the trend towards closing air traffic control posts. He said this has started to happen and is planned at around 20 in total.

He said the aim is to streamline air traffic control by concentrating it at places where traffic is heaviest.

In some cases alternatives can include using personnel who provide pilots with information rather than air traffic control instructions.

“We’ve warned the government to be careful, because the plans include airports that currently handle Boeings and Airbuses and are served by companies such as Ryanair and EasyJet.

“And this is where we’re much more concerned, arguing that for these airports, it doesn’t seem acceptable to remove air traffic control. Because we’re not sure that the airlines will continue to operate there.”

Regarding border checkpoints, he said closures have already affected certain airports, such as Orléans.

“This is very problematic because when business jets arrive from abroad – from England, for example – they cannot land at these airports without first passing through an airport that has a border control point.”

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 revenue but for other uses, including as hubs for emergency services in crises, Canadair firefighting planes, water-bomber helicopters and mountain rescue services, as well as for military training exercises which are increasing due to the geopolitical situation.

One solution, he said, would be better planning at regional and national level over how each airport can best be used.

“Is this airport intended to be developed for passenger traffic? Or is it better suited to hosting training flights or military drones?

“We need to have a strategic vision for the French airport network. We need to stop saying there are too many airports in France, and instead ask what we can do with them.”

A more “coherent” tax regime for the sector is also needed so France can be more competitive with its neighbours, he said.

Mr Juin said the EU’s approach had “progressed” compared with 10 years ago, when it considered all airports should be self-supporting. However, he said it remains “too rigid” and “too theoretical”.

UAF has contributed to the consultation on the draft rules and “we hope they will come back to reality”.

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 is particularly concerned about plans to limit operating aid for airports with 500,000 to one million passengers to five years, saying smaller airports will continue to struggle to cover their costs because of factors including seasonal and volatile passenger numbers, inflation and airlines increasingly choosing whichever bases are most profitable.

The group also opposes reducing the ceiling for investment aid from five million to three million passengers, arguing regional airports need substantial investment to modernise, enhance safety and security, adapt to climate change and decarbonise.

ACI Europe director general Olivier Jankovec said the rules must be “grounded in economic and market realities”.

“A framework that makes it harder to sustain regional airports – or forces some of them to close – would damage local economies and the single market.”

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.”

Regarding operating aid, she said the revised framework seeks to focus support where market failures are strongest and public intervention is most justified.

“Airports with up to 500,000 yearly passengers are generally not expected to be viable without public support, but account only for a small share of passenger traffic within the EU, so usually have a limited effect on competition.

“Airports between 500,000 and one million passengers often still have significantly lower traffic levels than before the Covid-19 pandemic.

“While the commission considers that they are large enough to be profitable, it recognises that due to the external shocks in recent years they might require more time to become profitable.

The commission therefore considers it justified to allow operating aid to airports with up to one million yearly passengers for a transitional five-year period.”

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 if passenger number grow, such as: 

• Perpignan

• Calvi 

• Carcassonne

• La Rochelle, 

• Toulon-Hyères

• Caen

• Béziers

• Limoges.