Brussels, 06/03/2003 (Agence Europe) - On Wednesday the European Commission decided to authorise a temporary social aid scheme to enable certain categories of passengers to have reduced fares on air services between Paris (Orly) and four Corsican airports. The scheme is intended to promote the opening-up of Corsica, make it possible to combat handicaps connected with its insular nature and promote economic development and job creation in the island.
Passengers under 25 or over 60 , students under 27, passengers travelling as a family with minors, disabled persons or invalids, as well as passengers with their main place of residence in Corsica will be eligible for a reduction of EUR 41 on their air fare between Paris and Corsica. The Commission considered the scheme constituted state aid for the benefit of airlines, noting in a press release: "By generating an air service demand in excess of what would be generated without it, this scheme gives an advantage to the carriers operating these services. This advantage is funded by means of public resources and is likely to distort competition and trade between Member States." Nevertheless, the Commission authorised the scheme because the aid actually goes to the consumers; is social in character; and is granted without discrimination with regard to the origin of the services, since all the companies wishing to operate on the four lines will be eligible for the new scheme. The Commission also notes that the scheme is temporary, since the French authorities have expressed their intention of once again introducing public service obligations with financial compensation for these services. The establishment of such a scheme is at present being delayed by a dispute before the French administrative courts.