The European Commission has approved a public grant of around €150m to Société Aéroports du Grand Ouest in order to build an airport.
The subsidy will be used to construct the Notre-Dame-des-Landes Airport, just over 20km to the north of Nantes.
Notre-Dame-des-Landes will be the new site of Nantes Atlantique Airport, which was unable to cater to regional development requirements.
The project is expected to enhance regional connectivity without affecting the existing competition in the internal market.
French authorities have also presented a business plan for the project, which states that public subsidy is required for the implementation of the project.
The project is currently being evaluated to ensure that it meets European environmental law requirements.