EU approves aid for 2 airports in UK, Poland

BRUSSELS (Thomson Financial) - The European Commission said it has approved aid to Newquay Cornwall airport in the UK and Rzeszow Jasionka airport in Poland, finding both cases to be compatible with European common market rules on state aid.

The commission said the redevelopment of Newquay Cornwall airpor, in south-west England is expected to cost 44 mln stg, of which 19.5 mln will come from EU funds.

It said the project 'allows the construction of essential infrastructure designed to achieve a clear defined objective of general interest without leading to undue distortion of the market.'

It added that Cornwall and the Isles of Scilly are one of four areas of the UK which the commission has designated as areas eligible for the award of national state aid for regional development which is compatible with the common market.

In a separate case, the commission approved a maximum state contribution of 49 pct of the 8.6 mln eur required to develop infrastructure at the Port Lotniczy Rzeszov Jasionka regional airport in south-east Poland, saying that the project would enhance the social and economicdevelopment of the entire Rzeszowsko-Tarnobrzeski region.

Source: By Phil Mccomish, forbes.com