Commission Decision (EU) 2016/1031 of 6 November 2015 on the measures SA.35956 (13/C) (ex 13/NN) (ex 12/N) implemented by Estonia for AS Estonian Air and on the measures SA.36868 (14/C) (ex 13/N) which Estonia is planning to implement for AS Estonian Air (notified under document C(2015) 7470) (Text with EEA relevance)

• CELEX: Decision (EU) 2016/1031
• Articles: 7

Article 1

1.   The financing of AS Estonian Air through the EUR 2,48 million capital injection which Estonia implemented in February 2009 does not constitute aid within the meaning of Article 107(1) of the Treaty.

2.   The sale of the ground handling section of AS Estonian Air to Tallinn Airport for EUR 2,4 million in June 2009 does not constitute aid within the meaning of Article 107(1) of the Treaty.

Article 2

1.   The State aid amounting to EUR 17,9 million unlawfully granted in favour of AS Estonian Air by Estonia on 10 November 2010, in breach of Article 108(3) of the Treaty, is incompatible with the internal market.

2.   The State aid amounting to EUR 30 million unlawfully granted in favour of AS Estonian Air by Estonia on 20 December 2011 and 6 March 2012, in breach of Article 108(3) of the Treaty, is incompatible with the internal market.

3.   The State aid for rescue purposes amounting to EUR 37 million unlawfully granted in favour of AS Estonian Air by Estonia between 2012 and 2014, in breach of Article 108(3) of the Treaty, is incompatible with the internal market.

Article 3

1.   Estonia shall recover the aid referred to in Article 2 from the beneficiary.

2.   The sums to be recovered shall bear interest from the date on which they were put at the disposal of the beneficiary until their actual recovery.

3.   The interest shall be calculated on a compound basis in accordance with Chapter V of Commission Regulation (EC) No 794/2004  ( 55 ) .

Article 4

1.   Recovery of the aid referred to in Article 2 shall be immediate and effective.

2.   Estonia shall ensure that this Decision is implemented within four months following the date of notification of this Decision.

Article 5

1.   The State aid for restructuring purposes which Estonia is planning to implement for AS Estonian Air, amounting to EUR 40,7 million, is incompatible with the internal market.

2.   The aid shall accordingly not be implemented.

Article 6

1.   Within two months following notification of this Decision, Estonia shall submit the following information to the Commission:

(a)

the total amount (principal and recovery interests) to be recovered from the beneficiary;

(b)

a detailed description of the measures already taken and planned to comply with this Decision;

(c)

documents demonstrating that the beneficiary has been ordered to repay the aid.

2.   Estonia shall keep the Commission informed of the progress of the national measures taken to implement this Decision until recovery of the aid referred to in Article 2 has been completed. It shall immediately submit, on simple request by the Commission, information on the measures already taken and planned to comply with this Decision. It shall also provide detailed information concerning the amounts of aid and recovery interest already recovered from the beneficiary.

Article 7

This Decision is addressed to the Republic of Estonia.