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Are France’s loss-making regional airports under threat?

Just a quarter of France's airports break even financially with the rest - the smaller, regional airports - heavily subsidised by the state. But can this situation continue?

Are France's loss-making regional airports under threat?
The tower control of the Brest-Bretagne Airport in western France. Photo by Fred TANNEAU / AFP

France last year welcomed 199 million airline passengers – bringing the country numbers back to almost pre-pandemic levels. 

But it was only a handful of French airports that took in the vast majority of those millions – with Paris’ Roissy-Charles de Gaulle (CDG) and Orly airports responsible for more than half of the air traffic.

France’s Cour de Comptes counted 73 mainland commercial airports in their 2023 review of the airline sector – but only 15 of those actually break even, the rest rely on subsidies.

Some of these airports are exceedingly small, like Troyes which had just 1,562 passengers in 2023. Others, like Rodez with 31,577 passengers and Castres with 36,454 got a bit more.

Map of airports in France, including both passenger and non-passenger airports (Credit: l’UNION DES AÉROPORTS FRANÇAIS & FRANCOPHONES ASSOCIÉS – UAF & FA)

Limoges was larger, with 264,426 passengers in 2023, but it still paled in comparison to the 10.8 million that passed through the Marseille airport.

The cost of small-to-medium sized airports

The former head of the Air Transport Institute, Jacques Pavaux, authored a 2019 study on public aid to airports, finding that those with less than one million passengers per year are not profitable.

As for the others, most have been loss-making for years, unable to continue services without significant aid from the state.

“Their chronic deficit has been filled by recurring operating subsidies granted over decades of existence. Almost half of them have never had, and will never have, any chance of reaching the traffic threshold guaranteeing financial balance,” Pavaux wrote. 

The study found that state and local authorities spend around €90 million every year to help keep the small-to-medium sized airports afloat. 

Of the 73 airports listed in the Cour de Comptes report, a little over half (38) counted fewer than 700,000 passengers a year. 

The Cour de Comptes called these “the most economically fragile”, noting that they depend on aid from local authorities to balance operations and carry out the necessary investments.

On top of that, many do not have negotiation options and find themselves competing with neighbouring airports, leaving them forced to take on contracts with low-cost airlines. 

As of 2021, low-cost air traffic represented more than 90 percent of commercial traffic for airports in Dôle, Vatry, Limoges, Bergerac, Nîmes, while it constituted all of the traffic at the Carcassonne, Tours and Béziers airports.

Over-density of airports

Some areas stand out for having a particularly high volume of commercial passenger airports, like Occitanie along the Mediterranean coast in southern France, which is home to nine.

The Cour de Comptes report found that in Occitanie 71.5 percent of regional airport traffic occurred at the Toulouse airport, followed by Montpellier with 14.4 percent.

The other seven – Carcassonne, Tarbes, Perpignan, Nîmes, Béziers, Rodez and Castres – combined provided the remaining 14 percent of traffic. 

Valérie Renet, the head of the Occitanie Regional Chamber of Accounts, told France 3 that it is this ‘over-density’ that leads to financial losses, as “operating deficits are covered by public subsidies, that is to say that taxpayers’ money is used to balance the operation of these airports, usually for the benefit of low-cost companies.”

Last year, the airport of Bézers, which is “totally dependent on Ryanair”, received €5.1 million in public money to reach equilibrium, which equates to about €20.69 paid out per passenger, France Bleu reported. 

As for Ryanair, the company benefits from over €30 million in public subsidies – or €16 per passenger – from regional airports in Occitanie alone.

The picture is similar in Brittany, which is home to eight airports, though over 80 percent of traffic is concentrated in Brest, which has a little over one million passengers a year (as of 2018).

The future for small-to-medium sized airports

Building new airports has already become controversial – a proposal for a new airport at Notre-Dame-des-Landes near the city of Nantes was the subject of huge protests for years until in 2018 the project was officially abandoned.

But that doesn’t mean that the loss-making existing airports are under threat. 

In terms of what to do with the loss-making airports, Renet focused on the situation in Occitanie. She told France 3 that she was “not advocating for getting rid of the airports. They serve other needs specific to the region, not just commercial flights.”

For example, the Nîmes airport is a national hub for air rescue and civil protection operations, meanwhile ‘pelicandromes’ which are used to fight forest fires, are installed at the Béziers, Carcassone and Perpignan airports. 

Instead, Renet and the Cours de Comptes advocated for streamlining the management of airports to a regional, rather than local level. This would help to avoid overlapping flights – like a Pau-Paris and a Tarbes-Paris that take off around the same time.

The situation may also change in 2027, when the European Commission is due to examine public aid given to airports and whether large subsidies given to airports constitutes unfair competition.

There are also climate concerns, as France moves to invest more train transport to reduce carbon emissions. In 2021, the country passed a law banning domestic air links of less than two hours and 30 minutes when an alternative train option exists.

However, this law has so far only banned three routes: Orly-Bordeaux, Orly-Lyon, and Orly-Nantes.

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EES PASSPORT CHECKS

EES border checks could undergo ‘soft launch’, UK says as app concerns mount

The UK government is preparing for a "soft launch" of the new EU border system – the Entry/Exit (EES) system - in October but authorities are still waiting for European Commission to confirm the start date, amid concerns over the delay of a new app.

EES border checks could undergo 'soft launch', UK says as app concerns mount

The UK government is preparing for a soft launch of the new EU border system – the entry/exit (EES) system – on the assumption that it will go live on October 6th, ministers told a hearing at the House of Commons European scrutiny committee this week.

But the European Commission is expected to confirm the exact launch date of the new biometric checks for non-EU travellers entering the Schengen area at some point this summer, they added.

“We are very much working on a basis whereby this policy will go live on the 6th of October. It is important that we plan for that eventuality. We are expecting to hear definitively from the European Union that ‘go live’ arrangement in the summer,” Tom Pursglove, UK Minister for Legal Migration and the Border told the committee.

The parliamentary committee is conducting an inquiry on the disruptions the system will cause in the UK.

Pursglove also said that “precautionary measures” have been agreed by the EU, that will be put in place in certain circumstances after the start of EES, for example if delays at the borders exceeded a certain length of time.

Guy Opperman, Under-Secretary of State at the Department for Transport, said that in practice this meant a “soft launch” of EES for 6 months before “a full go live”. During that soft launch EU member states and the UK could deploy flexibility measures should problems occur.

“The likelihood is, after multiple delays, that the 6th of October will proceed” and the implementation looks “very different” compared to previous scenarios considering the flexibility allowed in the first 6 months, he argued.

No details were given on what these “flexible” measures would involve however. 

READ ALSO: Your questions answered about Europe’s EES passport checks

He conceded that “a lot of work” still needs to be done but the UK “should be as ready as everybody” and “better be at front of the queue”.

App not ready

During the meeting, it also emerged that a much-anticipated app that would allow remote pre-registration of non-EU citizens subject to the checks will not be available for testing until August “at best”, prompting concerns about the EES launch date.

“You don’t need to be a sceptic about future projects to think that the provision of the app in August for going live in October is optimistic,” Opperman said.

Ministers confirmed that the app will not be ready in time for October and the committee previously stated it might be delayed until summer 2025.

The app will facilitate pre-registration, but photo and fingerprints will still have to be taken at the border in front of a guard, the committee heard.

READ ALSO: How do the EU’s new EES passport checks affect the 90-day rule?

Several MPs asked whether the entry into operation of the EES should be delayed again if technology is not ready. But Under-Secretary Opperman said the app “is not going to be a panacea to fix all problems”.

The main aim of EES is to increase security and to ensure that non-EU nationals visiting the Schengen area for a short-term do not stay more than 90 days in any 180-day period.

The entry into operation of the system has already been delayed several times and there have been calls from certain travel companies and national authorities to delay it again.

Under the new scheme, non-EU/EFTA travellers who do not need a visa will have to register their biometric data (finger prints and facial images) in a database that will also record each time they enter and exit the Schengen area.

Instead of having passports manually stamped, travellers will have to scan them at self-service kiosks before crossing the border. However, fingerprints and a photo will have to be registered in front of a guard at the first crossing and there are concerns the extra time needed will generate long queues, especially in Dover, Folkestone and St. Pancras station in London, where there are juxtaposed French and UK border checks.

Progress in preparations

Minister Pursglove also updated MPs on ongoing preparations. He said some testing of the system will take place within days, 5 kiosks have been installed at St. Pancras station and are available for testing. “You are beginning to see the physical infrastructure appear,” he said.

Kiosks and extra lanes are also being created at the port Dover and it was agreed with the EU passengers travelling by coach will be checked away from the Eastern dock, where controls usually take place, allowing to gain space. The vehicles will then sealed and drive on the ferries.

MPs also discussed the infrastructure cost linked to the introduction of the EES. Opperman said all EU countries will have to make “huge investments” in their ports. In the UK, he argued, this will help “address problems that have existed for some time”. Because of this “massive investment”, in a few years time “Dover will be totally transformed,” he said.

This article is published in cooperation with Europe Street News.

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