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Image header Agence Europe
Europe Daily Bulletin No. 8006
Contents Publication in full By article 16 / 48
GENERAL NEWS / (eu) eu/state aid

Commission likely to initiate proceedings against Sabena on 25 July

Brussels, 13/07/2001 (Agence Europe) - The European Commission should be initiating examination proceedings on the re-capitalisation plan of the Belgian airline company, Sabena, on 25 July. Last January, the Belgian State undertook to inject 100 million euro and Sabena's partner, Swissair, 250 million euro, in the framework of a "Blue Sky" restructuring programme. This share is said to have been placed into question by the Swissair's withdrawal from Sabena and the Commission now seems to have doubts as to the nature of the investment made by the Belgian State. According to the case law of the Court of Justice on State aid to airline companies, capital increases made by a public entity are only admissible if the latter behaves like a private investor on the market, the Commissioner for Transport Loyola de Palacio recently recalled. This no longer seems to be the case for the social chapter of Sabena's restructuring plan being envisaged by the Belgian authorities, according to the Belgian press.

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