commiss decis juli compens respect deficit incur tap rout autonom region azor madeira portugues text authent text eea relev ec commiss european commun regard treati establish european commun subparagraph articl thereof notic accord articl interest parti submit comment regard comment letter april regist april portugues govern inform commiss intent settl alleg accumul debt esc ow transport aéro portugues sa hereinaft refer tap letter june regist june respons letter commiss portugues author provid inform abovement oper list criteria appli compens tap loss rout autonom region azor madeira hereinaft refer autonom region onward commiss request inform letter august decemb portugues govern answer letter octob januari regist octob januari januari offici commiss director gener transport respons state aid held meet brussel repres portugues civil aviat administr tap portugues perman represent march commiss decid compens respect deficit incur tap period aid compat common market pursuant articl treati open procedur regard futur method calcul compens hereinaft refer method portugues govern inform decis letter april publish offici journal european commun give interest parti opportun comment portugues author repli commiss letter letter juli unit kingdom comment case support commiss conclus comment transmit portugues author repli letter septemb inform provid portugues author letter februari repli commiss letter novemb ii articl treati inter alia commiss open articl procedur regard notifi aid member state concern put propos measur effect procedur result final decis portugues govern inform commiss deficit incur respect autonom region made payment esc favour tap march portugues govern made payment wait final decis commiss fail fulfil oblig articl treati iii portugues author provid analyt breakdown deficit incur tap rout question indic cost incur revenu earn addit portugues author maintain compens respect deficit public servic oblig impos state airlin consid state aid articl treati aid distort competit favour airlin question fare impos establish level dispos incom popul autonom region portuques govern impos oblig airlin assum burden arrang semicontractu natur consid state aid contrari state open procedur tap freeli fix normal fare rout question fact articl portugues decre octob fare scheldul flight domest rout mainland autonom region azor madeira region set basi criteria area refer averag weight fare exce averag rpk european network carrier oper rout averag adjust relat distanc internation recogn criteria fact averag fare european network fierc price competit basi obviat discrimin fare set exclus rout refer base comparison respect cost destin kilometr directli relat cost born airlin rout compens provid practic normal fare appli tap autonom region consider lower normal fare european network rout similar distanc born fact tap oper deficit autonom region esc compens base criteria portugues govern esc iv articl portugues constitut social protect resid autonom region imper commit portugues govern smooth inequ stem geograph posit portugues author impos public servic oblig rout autonom region mainland entrust tap task oper rout purpos govern fix yearli basi tariff resid autonom region level consider lower airlin fix take account cost tap suffer consider loss fulfil public servic oblig requir impos portugues govern portugues govern compens tap respect deficit incur rout portugues govern appli criteria calcul compens tap receiv annual subsidi respect regular air link mainland autonom region autonom region funchal porto santo subsidi calcul inspector gener financ made monthli instal equival number resid student person accompani autonom region sport team carri mainland multipli differ normal tariff tap appli passang tariff set abovement passeng rout accord portugues law articl decre law august state compens tap year loss inspector gener financ recogn compani suffer rout serv commerci reason rout serv polit reason airlin oper account commerci interest determin govern portugues author confirm commiss rout design rout autonom region portugues author alleg direct flight autonom region carri region traffic remain passeng intern flight serv region traffic direct flight tap increas number flight proport increas traffic load factor high addit flight lead deficit direct flight load factor deficit passeng carri portugues author mean deficit caus passeng travel domest leg autonom region intern flight funchal lisbon rome account calcul total deficit incur tap basi assumpt portugues govern calcul addit deficit multipli number passeng travel nation leg flight deficit passeng direct flight rout articl treati articl eea agreement hereinaft refer agreement provid aid grant state state resourc distort threaten distort competit affect trade incompat common market agreement present case commiss open articl procedur regard method chosen portugues govern method base deficit incur airlin differ tariff impos govern normal tariff tap appli passeng commiss consid tap set normal tariff high level make high profit compens fact region traffic special categori passeng benefit promot tariff articl procedur portugues author show impos ceil averag fare charg tap european flight similar distanc limit tap tariff freedom principl preclud possibl method involv compens deficit incur tariff set tap european rout reflect cost flight autonom region european flight similar distanc term fix cost similar cost structur variabl cost land charg ground handl mainten fee lower flight mainland autonom region domest flight european tariff ceil prevent tap set normal fare level higher cost respect portugues author shown detail tap oper deficit rout autonom region esc compens base method wasesc council regul eec market access public servic oblig oblig impos air carrier respect rout licens oper member state measur ensur provis servic satisfi fix standard continu regular capac price standard air carrier assum sole commerci interest present case portugues govern interest maintain adequ air servic autonom region promot develop resolv problem stem geograph isol portugues govern end impos tariff oblig regard rout directli entrust flag carrier tap oper rout decid compens loss incur result public servic requir order minim cost servic portugues govern public tender procedur offer european carrier possibl submit tender offer oper rout award tender take account inter alia cost compens requir articl regul eec guarante end exclus concess tap madeira regul eec applic azor portugues govern oblig appli tender procedur provid articl thereof traffic autonom region context note portugues govern commit appli articl autonom region januari latest light commiss share portugues govern opinion semi contractu natur arrang tap tariff oblig impos tap appear compar legal requir unilater establish state consid contractu oblig freeli negoti parti portugues govern follow open tender procedur select carrier oper rout question exclud amount state resourc paid tap higher amount payabl award tender compens respect public servic oblig consid commiss constitut state aid mean articl treati memorandum march develop commun air transport polici final compens charact aid favour tap aid strengthen tap competit posit regard competitor distort competit eea entri forc liber measur market character accru competit aid affect trade air transport industri activ natur involv tran border oper aid tap consid compat common market pursuant articl treati articl agreement provis invok portugues author aid social charact grant individu consum compat common market grant discrimin relat origin product articl applic present case compens deficit incur restrict access rout autonom region tap appear aid measur behalf carrier aid scrutini aid promot execut import project common interest remedi disturb economi member state pursuant articl treati articl agreement compens tap oper deficit repres sector aid fall articl treati articl agreement aim assist air transport sector overcom handicap portugues airlin articl treati articl agreement provid exempt respect aid promot facilit develop region articl treati agreement provid exempt aid benefit region suffer problem underdevelop commun amend commun commiss explain method applic articl region aid appli articl treati articl agreement commiss assess rel level develop zone compar commun averag purpos provis socio econom situat assess refer capita gdp gross domest product pp purchas power standard commun index region stage rel level region develop compar commun averag region classifi fall scope articl treati articl agreement level ii region basi nut gdp pp threshold lower indic abnorm low standard live underemploy appli indic portugues territori autonom region includ deem region fall articl treati articl agreement basi data portugues region gdp pp higher portugues gdp pp period commun averag principl commiss oppos exempt oper aid air transport sector liber measur provid regul eec articl public servic oblig fulli applic compens public servic oblig accept articl treati articl agreement compens deficit incur tap rout autonom region benefit exempt laid articl treati articl agreement commiss fact expressli envisag possibl grant exempt pursuant articl compens public servic oblig promot region develop memorandum cite degre access market compens tap deficit maintain life line connect autonom region compens tap deficit oper aid region charact design overcom perman structur disadvantag caus remot locat autonom region view situat appear long access rout liber portugues govern deal econom social problem link remot autonom region impos public servic oblig respect compens deficit incur tap rout present case commiss consid basi element provid portugues author method principl lead overcompens deficit incur tap rout autonom region compens consid region aid compat common market agreement articl treati articl agreement subject condit compens paid higher deficit incur end commiss requir portugues author submit annual report implement aid scheme commiss note portugues author undertak appli regul eec rout question januari adopt decis articl aid notifi portug compens deficit incur tap fulfil public servic requir rout autonom region azor madeira compat common market eea agreement januari aid promot develop area standard live abnorm low underemploy provid aid grant exce deficit incur rout articl portug submit commiss annual report implement aid scheme articl decis address portugues republ brussel juli commiss marcelino oreja member commiss oj oj oj oj