Verdict: Cofag has to pay 1,5 million to Graz Airport

Graz Airport (Photo: Jan Gruber).
Graz Airport (Photo: Jan Gruber).

Verdict: Cofag has to pay 1,5 million to Graz Airport

Graz Airport (Photo: Jan Gruber).
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Graz Airport initially did not receive any Corona aid from the federal government. They went to court against it and won. The judgment, which has now become legally binding, means that the state has to pay an additional amount of millions of euros through Cofag.

At the beginning of the corona pandemic, the then short-term federal government outsourced the processing of applications for publicly promised support and cost reimbursement funds that were or were to be granted to entrepreneurs to its own GmbH. The approach was heavily criticized by the opposition and the highest court has now ruled that the chosen construction, which gave parliament almost no control options, is unconstitutional.

In the aviation sector, it is well known that the Kurz government granted the Lufthansa subsidiary Austrian Airlines a so-called “non-repayable grant” worth 150 million euros. This was intended to compensate for loss of income. There was also a large loan that was guaranteed by the state. This was paid back in full by the AUA. Incidentally, Austrian Airlines is the only airline that received money from the Austrian government. The fact that Level Europe, which was also a local company, came away empty-handed contributed significantly to the fact that it was declared bankrupt.

What is less known is that airports were also able to receive support as part of various programs launched through Cofag. However, there was a significant catch because the funding conditions simply stated that companies that were majority owned by the public sector were not allowed to receive anything.

All Austrian commercial airports were once owned by the federal and/or state governments. At some locations, cities and municipal utilities have also taken part. The picture has now changed because, for example, Flughafen Wien AG is a listed stock corporation. Klagenfurt was largely privatized and then renationalized again. At the time of the pandemic, Vienna and Klagenfurt were eligible for funding and also received money because, in terms of the conditions, they were private companies because the majority is in private hands.

The situation was a little different in Innsbruck, Salzburg, Linz and Graz. The federal state airports, however, have gone to court and, at least in the case of the Styria airport, there is now a legally binding decision. Graz Airport was certainly eligible to apply. The airport was awarded 1,5 million euros, including interest, which Cofag has to pay out.

The ownership structure of the Styrian airport played a significant role in the decision. This does not belong directly to the state or the city of Graz, but rather a holding company sits in between. Furthermore, Messe Graz, which is organized as a cooperative, holds six percent and the GSU is also on board with 0,09 percent. This constellation led to the court deciding that the airport is not completely in public hands, but is organized as a private limited company.

Since the judgment – ​​as mentioned – has already become legally binding, Cofag must pay a total of 1,5 million euros to Graz Airport. The funding amount is 1,34 million euros and the difference is default interest, which was legally awarded by the court.

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