Brussels, 12/03/2002 (Agence Europe) - On Tuesday, the European Commission adopted a proposal of regulation to protect European companies against unfair competition from subsidised third country competitors in the airline sector. As announced in EUROPE of 8 March, p.3, this instrument, which is based on the model of the anti-subsidy regulation for goods, will allow the Commission to open an inquiry on the basis of a complaint by the industry or on its own initiative, and to possibly impose retaliatory measures. These measures will take the form of a tax on third country carriers that receive public aid, or companies under state control in proportion to the injury suffered by European carriers. Commissioner for Transport Loyola de Palacio stressed that European airline companies must respect European competition rules whether or not they are going through a crisis such as that triggered by the events on 11 September, whereas third country airlines that compete with European companies on the international air link market are still not subject to similar rules on unfair competition. As a result, she remarked, the regulation proposed today by the Commission will give the European Union an instrument that will bring European airline companies into step. Trade Commissioner Pascal Lamy specified for his part that the rules of the WTO do not cover this sector for the time being. The instrument that is being proposed is intended to fill this gap while remaining consistent with the approach that has been adopted in the sectors subject to WTO rules. He gave his assurance that the regulation does not especially target American airline companies. The Commission, on the other hand, seems to have aid paid to Swissair in its line of fire.