The European Commission has given some initial guidance on the application of the State aid rules to assist airlines struggling with the loss to the industry caused by the air ban as a result of the volcanic ash cloud spread over much of European air space. The Commission confirmed that loans and guarantees granted at market conditions would not constitute aid. In addition, support measures to directly offset losses could be granted within the exception under Article 107 (2)(b) of the TFEU, for aid to make good damage caused by natural disasters and exceptional occurrences. The Commission has said that it intends to issue further guidance to make clearer under what conditions assistance can be provided without breach of the State aid rules.