2014/883/EU: Commission Decision of 11 February 2014 on the measure SA.35388 (13/C) (ex 13/NN and ex 12/N) — Poland — Setting up the Gdynia-Kosakowo Airport (notified under document C(2014) 759) Text with EEA relevance

• Published date: 12 December 2014
• Official Gazette Publication: Gazzetta ufficiale dell’Unione europea, L 357, 12 dicembre 2014,Diario Oficial de la Unión Europea, L 357, 12 de diciembre de 2014,Journal officiel de l’Union européenne, L 357, 12 décembre 2014

12.12.2014 EN Official Journal of the European Union L 357/51

---

COMMISSION DECISION

of 11 February 2014

on the measure SA.35388 (13/C) (ex 13/NN and ex 12/N) — Poland — Setting up the Gdynia-Kosakowo Airport

(notified under document C(2014) 759)

(Only the Polish text is authentic)

(Text with EEA relevance)

(2014/883/EU)

THE EUROPEAN COMMISSION,

Having regard to the Treaty on the Functioning of the European Union, and in particular the first subparagraph of Article 108(2) thereof,

Having regard to the Agreement on the European Economic Area, and in particular Article 62(1)(a) thereof,

Having called on interested parties to submit their comments pursuant to the provision(s) cited above (1),

Whereas:

1. PROCEDURE

(1) By letter dated 7 September 2012 Poland notified to the Commission, for reasons of legal certainty, the planned financing of the conversion of a military airport into a civil aviation airport near Gdynia in the north of Poland. The measure was registered under the State aid case number SA.35388.

(2) By letters dated 7 November 2012 and 6 February 2013, the Commission requested further information on the notified measure. On 7 December 2012 and 15 March 2013, Poland submitted additional information. A meeting between the Commission and Poland took place on 17 April 2013. During this meeting, Poland confirmed that the notified financing was already irrevocably granted.

(3) By letter dated 15 May 2013, the Commission informed Poland that it will transfer the case in a not notified case register (NN case), because the major part of the financing notified to the Commission was already irrevocable granted. By letter dated 16 May 2013, Poland submitted further information.

(4) By letter dated 10 July 2013, the Commission informed Poland of its decision to initiate the procedure provided for in Article 108(2) of the Treaty on the Functioning of the European Union (TFEU) (2) (hereinafter: ‘opening decision’) in respect to the financing granted to Port Lotniczy Gdynia-Kosakowo sp. z o. o. (hereinafter: Gdynia-Kosakowo Airport Ltd) by the city of Gdynia (hereinafter: ‘Gdynia’) and the municipality of Kosakowo (hereinafter: ‘Kosakowo’). Poland provided its comments on the opening decision on 6 August 2013.

(5) The Commission’s decision to initiate the procedure was published in the Official Journal of the European Union (3). The Commission invited interested parties to submit their comments on the measure in question within one month of the publication date.

(6) The Commission did not receive any comments from interested parties. Poland was informed about this by letter dated 9 October 2013.

(7) By letter dated 30 October 2013, the Commission requested further information. Poland provided additional information by letters dated 4 November 2013 and 15 November 2013. A meeting between the Commission and Poland took place on 26 November 2013. Poland provided further information by letters of 3 December 2013 and 2 January 2014.

2. DESCRIPTION OF THE MEASURES AND GROUNDS FOR INITIATING THE PROCEDURE

2.1. BACKGROUND TO THE INVESTIGATION

(8) The case concerns the financing of a new civil aviation airport located in the Pomeranian Region (Pomorskie Voivodship), on the border of Gdynia and Kosakowo, 25 kilometres away from Gdansk airport (4). The new airport is owned and will be operated by Gdynia-Kosakowo Airport Ltd (hereinafter also ‘the airport manager’ or ‘Gdynia airport’). The airport manager is fully publicly owned by Gdynia and Kosakowo.

(9) The objective of the investment project is to create a second airport for the Pomeranian Region based on the infrastructure of the military airport located in Kosakowo (5). The new airport should serve mainly general aviation traffic (e. g. private jets, gliders/light-sport aircrafts), low cost carriers (hereinafter: ‘LCC’) and charters. At the time of notification it was expected that the airport would start its activities at the beginning of 2014. Based on a PricewaterhouseCoopers’ (hereinafter: ‘PWC’) report of 2012, the passenger traffic during the first years of operations was expected to be as follows: around […] in 2014, […] in 2017, […] in 2020 and at around […] in 2028.

(10) The origin of the project can be dated back to April 2005 when various regional authorities, the Ministry of National Defence, the Ministry of Transport and Gdansk airport (6) signed a letter of intent to create a new airport for the Pomeranian Region based on the infrastructure of the existing military airport located in Kosakowo. In July 2007, the local authorities of Gdynia and Kosakowo founded a company called ‘Gdynia-Kosakowo Airport Ltd’. In December 2009, Gdynia and Kosakowo obtained an agreement from the Ministry of Transport that Gdynia-Kosakowo Airport Ltd would be further responsible for the new airport. Based on this agreement, Poland handed over, by the agreement of 9 September 2010, for a period of 30 years the land of 254 hectare, on which the military airport is located, to Kosakowo, which then leased it for the same period to Gdynia-Kosakowo Airport Ltd.

The investment project

(11)

Because the existing Gdynia-Kosakowo (Gdynia-Oksywie) airfield was initially used exclusively for military purposes, the airport manager of the new airport is to be able to use the existing infrastructure (such as a runway of 2 500 meters, taxiways, an apron, navigation equipment etc.). The total investment costs, which are linked to the conversion project, are estimated at PLN 164,9 million (EUR 41,2 million (7)) in nominal terms and PLN 148,4 (EUR 37,1 million) in real terms. The table below provides an overview of the gradual development of the airport, which is divided into four phases. According to Poland, the total investment costs include also investments with regard to tasks falling within public policy remit (8), which amount to around PLN […] million (EUR […] million) in total (for all four phases). Table 1 Total nominal investment costs of Gdynia-Kosakowo airport in 2007–2030 The investment project Costs in PLN Costs in EUR Phase I: 2007 - 2011 […] […] Preparatory works (e. g. cleaning of the side, removal of old buildings and trees) and feasibility studies, planning Phase II: 2012 - 2013 […] […] — Terminal (to be ready in June 2013 and initially used for GA) — Building for the airport administration and the fire brigade — Renovation of the apron, — Energy infrastructure, navigation lights and airport fence — Airport maintenance and security equipment — Adjustment of the navigation equipment — Access roads, petrol station and car park Phase III: 2014 - 2019 […] […] — Investments necessary to serve bigger airplanes (e. g. Boeing 737 or Airbus A320), such as taxiway extension, apron and airport equipment — Other passenger service oriented investments (e. g. car park extension) Phase IV: 2020 - 2030 […] […] — Expansion of the Terminal — Extension of the aiport administration and fire brigade building — Extension of aprons, taxiways and car parks Total investment costs 164,90 41,02 Source: information provided by Poland.

The financing of the investment project

(12) The investment project is being financed through capital injections by the public shareholders (i.e. Gdynia and Kosakowo). The capital injections are intended to cover both the investment costs and the operating costs of the airport at the beginning of its operation (i.e. until 2019, including). The public shareholders expect that as from 2020 the airport manager will be profitable and able to finance all its activities from its revenues.

(13)

Until the time of notifying the project to the Commission (i.e. 7 September 2012), the public shareholders of Gdynia airport had agreed to contribute to the investment project and the losses of the airport in the first years of its operation, about PLN 207,48 million (9) (around EUR 51,87 million) in total. Gdynia would provide cash contributions amounting to PLN 142,48 million (around EUR 35,62 million) in years 2007-2019. Kosakowo provided a cash contribution of PLN 0,1 million (EUR 25 000) when the company was founded. In years 2011 – 2040 Kosakowo would contribute also with non-cash contributions amounting to PLN 64,9 million (around EUR 16,2 million) by converting a part of the annual land rent (being a liability of Gdynia airport towards Kosakowo) into shares of the airport (see Table 2 below). Table 2 Financing of the investment project through capital increases PLN Million EUR Million Before 18 June 2012 Cash capital injections of Gdynia 60,73 15,18 Cash capital injection of Kosakowo 0,10 0,03 Dept to equity swap of Kosakowo 3,98 1,00 Total contributions before 18 June 2012 64,81 16,20 Foreseen after 18 June 2012 Cash capital injections of Gdynia: 81,75 20,44 of which: in 2013 29,90 7,48 in 2015 […] […] in 2016 […] […] in 2017 […] […] in 2018 […] […] in 2019 […] […] Dept to equity swap of Kosakowo: 60,92 15,23 of which: in 2013-2039 (27*PLN […]) […] […] in 2040 […] […] Total contributions foreseen after 18 June 2012 142,67 35,67 Total foreseen capital of Gdynia-Kosakowo Airport Ltd 207,48 51,87 Source: based on information provided by Poland.

2.2. GROUNDS FOR INITIATING THE FORMAL INVESTIGATION PROCEDURE AND THE INITIAL ASSESSMENT

(14) The opening

...