In this article the author provides a dissected analysis of the application of state aid acquis and jurisprudence to the transport sectors in the European Union. The purpose of this article is threefold. First, an attempt will be made to position the concept of public service obligations and the notion of operating aid within the framework of state aid as applied to the transport sectors. The result of this attempt will codify the approach of European institutions, reveal the themes emerging from jurisprudential inferences and assess their significance for the future application of state aid to transport. Second, an analysis of the practice and lex judicata of operating aid will reflect on the interplay between the liberalization of the transport sectors in the Community and its impact on state aid application. Finally, by reference to the relevant acquis the author will provide insights of the function of the application of state aid in transport within the broader framework of anti-trust in the common market.
Journal of World Trade