Public Financial Support to Aviation During the COVID-19 in the Baltic Countries

ABSTRACT

The paper analyses government financial support (state aid) arrangements to the aviation sector in the Baltic countries due to the COVID-19 pandemic situation. The support schemes include three main features. First, the design of public support schemes grounds on a standardized Keynesian framework of stimulation measures during economic recessions. Second, state aid is a rather sensitive issue in the European Union context. Support schemes are generally banned and strictly regulated even in the global pandemic situation. Third, stimulation measures depend on countries' capabilities to support their flag carriers. Which has a direct impact on the post-COVID-19 competition situation in the region. The paper focuses on comparative analyses of the scope of state aid in the COVID-19 situation in the Baltic Sea Region. In the frames of research is given an overview of stimulative instruments proposed by international aviation organizations. As a conclusion will be discussed motives to support aviation and stimulation schemes particularities. © 2021 Kaunas University of Technology. All rights reserved.