State aid to airlines in Spain: An assessment of regional and local government support from 1996 to 2014

• A database of state aid to public transport has been created.
• A polarization in the distribution of state aid is observed.
• State aid has not allowed to consolidate a stable air transport supply.

State aid to increase air traffic at airports has been wide-spread in Spain since the 1990s Its monetary value and distribution among the various airports and carriers are little known aspects, as different formulas have been used for the transfer of funds and little research has been conducted. The use of a wide range of secondary sources has led to the creation of a database that permits an accurate description to be made of the true circumstances of state aid over these years. This paper estimates, for the first time, the amount of subsidies paid from 1996 to 2014, analysing their design and objectives and assessing their level of compliance with current EU legislation.