The discounts offered by the Timisoara airport in Romania to low cost flights operator Wizz Air are an illegal state aid which should be canceled, according to the Timis court of law. The decision came following a law suit initiated by Wizz Air's competitor Carpatair against the Traian Vuia international airport in Timisoara.

“The discount cannot be justified economically wise. The discount beneficiary, Wizz Air currently pays a negligible sum for airport taxes, which is not enough to cover the expenses generated by operating on the airport. As a result, a private investor, acting in the same economic conditions, would not have offered such a discount,” according to the Timis court's decision. The Timisoara airport gave an 85 percent discount to Wizz Air.

The European Commission has also started an investigation into the issue. A marketing agreement signed in 2008 between the Timisoara airport and Wizz Air and the non-payment of airport charges amounting to EUR 2.6 million as well as additional rebates of 72 to 85 percent on all airport charges for large aircraft are also being investigated. The Commission is concerned such preferential treatment may have the effect of forcing out of the market the only competitor of Wizz Air on some routes, according to an EC statement.

editor@romania-insider.com

(photo source: Wizz Air)