
Article 1 
The State aid implemented by the Kingdom of Spain for the airline Intermediación Aérea SL, amounting to EUR 919 879,98, on the one hand, and EUR 120 202 on the other, is hereby declared to be compatible with the common market on the basis of Article 87(3)(c) as start-up aid for new routes, subject to the following conditions.
Article 2 

1. The contributions shall form part of a programme for the development of Gerona airport.
2. All of the contributions shall be subject to a time limit. This period shall not exceed a maximum of five years following the opening of the route in question.
3. These contributions may not be paid if the aid is intended to help a new entrant to open links which are already open and to enter into direct competition with an existing operator who is already operating this route under similar conditions departing from Gerona airport.
4. The contributions shall be justified by means of a development plan established by Intermed and validated beforehand by the competent authorities for the route concerned. This plan shall specify the costs incurred and eligible, which must be directly concerned with the promotion of the route in order to make it viable without aid when the contract between Intermed and the Autonomous Government of Catalonia, the Gerona Regional Council and the Chamber of Commerce and Industry of Gerona expires.
5. The eligible costs, directly related to start-up, shall meet the following conditions:
(a) they shall cover the additional start-up costs which the airline would not have had to bear if it had been fully operational and which require a public contribution in order to share the risk of non-viability linked to the start-up period;
(b) conversely, they shall not cover standard operational costs such as hire or depreciation of aircraft, fuel, crew salaries or catering service costs.The competent authorities shall, if necessary, be assisted by an independent auditor during this task.
6. The total sum of aid from which a new route benefits shall never exceed 50 % of the start-up and advertising costs for the destination in question. Similarly, the contributions paid may not exceed 50 % of the actual costs in connection with this destination.
7. Any contributions paid by the Autonomous Government of Catalonia, the Gerona Regional Council and the Chamber of Commerce and Industry of Gerona which, at the end of the start-up period provided for in the contract, prove to have exceeded the criteria thus laid down shall be reimbursed by Intermed.
8. Spain shall establish a non-discriminatory, transparent aid scheme to ensure equal treatment for airlines wishing to develop new air services departing from Gerona airport, in accordance with the objective criteria laid down in this Decision.
Article 3 

1. The Kingdom of Spain shall take all necessary measures to recover, from the beneficiary, aid which is incompatible with the common market as referred to in Article 2 and unlawfully made available.
2. Recovery shall take place immediately in accordance with the procedures of national law, provided that they permit the immediate, effective implementation of this Decision. The aid recovered shall include interest compounded from the date on which the aid is made available to the beneficiary until the date of recovery. The interest shall be calculated on the basis of the reference rate used to calculate the grant equivalent in the framework of regional aid.
Article 4 
The Kingdom of Spain shall inform the Commission, within two months of the date of notification of this Decision, of the measures taken to comply with it.
Article 5 
This Decision is addressed to the Kingdom of Spain.
Done at Brussels, 20 October 2004.
For the Commission
Loyola DE PALACIO
Vice-President