The City Council of Karlstad decided to grant Karlstad Airport AB the right to enter into an agreement with an airline operator and to co-finance the route the airline operator would operate. The aim was to promote local business by minimizing travel time to other European countries.
Unlike the Administrative Court in Karlstad, the Administrative Court considers that the decision contravenes the EU Air Traffic Regulation as it is the state, for Sweden's part, through the Swedish Transport Administration, which has to ensure a minimum supply of regular air services through decisions on public service obligations and financing.
Since the decision was made in contravention of the regulation and concerns something that is not a municipal matter, the decision of the municipal council is illegal. The Court of Appeal therefore cancels the decision.