The book provides an up-to-date analysis of EU State aid rules applicable to the airline industry and investigates their effectiveness in dealing with market shocks and environmental challenges. The research is based on a comprehensive database of Commission decisions and case-law on State aid awarded during the pandemic and explores future trends in State aid enforcement and litigation. The background is provided by an assessment of the international and EU regulatory framework applicable to the aviation market, with a focus on EU State aid regime. The analysis of the database suggests that further action is needed to minimize market fragmentation and to ensure coherence with EU's long-term objectives. Possible adjustments to State aid policy in the sector are evaluated also in light of the challenges of a future EU industrial policy.