The European Commission on Friday cleared a subsidy to Ryanair for the launch of a new route between London Stansted and Toulon.The aid will be granted by the Chamber of Commerce and Industry of Var, which is the owner and operator of Toulon Hyeres Le Palyvestre Airport. The Commission said the subvention, which will take the form of route-specific marketing related to the launch and ongoing promotion of the route, is compatible with the Common Market rules on state aid and in line with its previous rulings in this area, such as the Charleroi/Ryanair decision (ATWOnline, Sept. 8, 2005).

The aid, payable in respect to the number of passengers carried, is limited to 50% of additional costs borne by Ryanair and will be capped at ?500,000 ($631,380) per year for three years with a possible extension for another two. The CCI of Var will ensure the aid is paid only in respect to additional costs actually incurred by Ryanair in the route's launch, the EC noted.