Brussels, 11/12/2002 (Agence Europe) - On Wednesday, Commissioner Loyola de Palacio (transport) presented the press with a series of measures that the European Commission has adopted with regard to airlines:
Olympic Airlines: the Commission is going to ask the Greek government to refund EUR 194 million in aid granted to the "Olympic Airlines company, which is considered to be incompatible with Community law as it allows the company to benefit from preferential treatment compared to its competitors. This EUR 194 million corresponds to part of the aid previously granted but which was incorrectly used (following a Commission decision in 1998, the company received aid that was dependent on implementing a restructuring plan for the 1998-2002 period, which was not carried out, as well as new aid illegally granted after 1998 (deferred fiscal and social security payments). The Commission on the other hand believes that a loan of EUR 19.5 million granted in February 2002 by Greece to Olympic Airways does not constitute aid and has confirmed that the compensation received for moving to the new airport to Spata, as well as the application of 8% VAT on inland flights, were compatible with competition rules. Greece now has two months to inform the Commission about what measures it intends to carry out. Questioned about the government's intention about appealing this decision at the Court of Justice, Ms de Palacio warned that, "if Greece wants to go to the Court of Justice, it has the right to do so but that will mean putting everything on the table, as well as the EUR 1.4 billion Olympic Airlines has received since 1994".
Ryanair: the Commission will be opening formal investigation proceedings into the advantages received by the Irish airline Ryanair when it set up at Charleroi airport in 2001. The Walloon Region and the airport management company controlled by the Walloon Region, Brussels South Charleroi Airport (BSCA) granted exclusive advantages to Ryanair, such as landing tax reductions and offices, in exchange for which the company gained commitments over several years that guaranteed income for the airport. The investigation will seek to determine whether measures taken by BSCA constituted State Aid that distorted competition in favour of this company or whether it complied with the principles of private investment and a market economy. The Commissioner explained that, "None of this has anything to do with the fact that Ryanair is a low cost company".
Intermed: the Commission has decided to open formal investigation proceedings into the advantages granted exclusively to the Intermediación Aérea SL (Intermed) airline in connection with the regular flight line between Gerona and Madrid, by the Autonomous Government of Catalonia. The Commission considers that these advantages could be interpreted as illegal State Aid and therefore incompatible with a functioning internal market. The State Aid does not in fact respect the specific conditions that allow Member States to impose public service (or development) obligations on regular airline services to an airport serving a peripheral zone or a liaison with low traffic to regional airports. These specific conditions stipulate that these liaisons must be essential for the economic development of the region in which the airport is located and proportionate in order to provide a service that responds to fixed standards (continuity, regularity, capacity and price) which the airline could not meet if commercial interest alone was the only concern. These standards call for public service obligations to be imposed in keeping with strict conditions, such as the organisation of offers for tender procedures after information is provided by the Commission and airlines using the liaison. In this case, this procedure has not been respected.
Italy: the Commission has authorised the guaranteed insurance system for the airline sector put into place by Italy on 28 September - 31 October 2002 in the wake of the 11 September attacks in New York. In its communications of 10 October 2002 and 2 July 2002 on the "Consequences of the attacks in the USA for the air transport sector", the Commission gave exceptional authorisation for the granting of aid to the airline sector, notably in the field of insurance. This aid had been extended to the end of October 2002, the date that the Commission believes that the situation on the air transport market in Europe ceased having any justification or a new extension of this aid.
France. The Commission has refused a part of emergency aid in France granted to French airline companies to compensate the losses suffered by interruption to air traffic from 11-14 September 20014, following the New York attacks. The Commission notes that a par to this system goes beyond the four-day deadline authorised and that the extensions could cause competition distortion in the EU.