Brussels, 28/09/2001 (Agence Europe) - The European Commissioner for transport, Loyola de Palacio, met the Belgian Minister for Business and Public Share-Holding, Rik Daems, on Thursday, over the Sabena issue. Whereas the Belgian national airline company is on the verge of bankruptcy, the Commission should, in principle, decide on 10 October on the re-capitalisation of Sabena, that is to say within the legal two-month deadline following Belgium's notification of aid to the Commission. "This deadline may be extended if the Commission requests further information", her spokesperson nevertheless stipulated on Thursday. The Commission will have to assess whether or not the 430 million euro re-capitalisation plan, announced by the Sabena shareholders, the Belgian State and Swissair, in February then July 2001, amounts to State aid, i.e. whether or not the public shareholder is acting like a private investor. The Commission's services will have to assess each clause and financial aspect of the plan, before deciding either to drop the case if it decides that it is not aid, or open an in-depth investigation.
The assessment will be independent of the decisions the Commission will take over aid paid to airline companies to cover the increase in insurance premiums linked to the "risks of war", by virtue of the code of conduct adopted by European finance ministers, in Liege on 22 September, the spokesperson recalled.
Sabena pilots went on strike on Friday to protest against the company's restructuring plan. This plan, accepted by other Sabena trade unions, should on 3 October, be submitted to a referendum among the company's personnel. The same day, the company's shareholders, the Belgian State and Swissair, should release the first part of the re-capitalisation. Sabena's restructuring plan provides for the selling off of activities, closure of certain routes, a reduction in the fleet and the loss of some 1,400 jobs. "Everyone knows that the alternative to this plan is the company's closure", declared the Executive Director, Christoph Muller. A destiny that the Italian airline company, Alitalia, shares, which has registered a fall of 60% in reservations since the attacks of 11 September, whereas it was already in financial trouble before that date. The Italian company has just announced a reduction of 10% of its staff.