EU minister wants US airline price inquiry

The European Commissioner for Transport has called for an investigation into complaints by European airlines that US competitors…

The European Commissioner for Transport has called for an investigation into complaints by European airlines that US competitors have slashed transatlantic ticket prices since getting government aid following last month's terror attacks.

Commissioner Ms Loyola de Palacio wrote a letter yesterday to US Transport Secretary Mr Norman Mineta saying that if the complaints were founded "it would be totally unacceptable for Europe," spokesman Mr Gilles Gantelet said today.

The letter called on Mr Mineta to "take all necessary measures to end this practice."

According to Association of European Airlines (AEA) head and Air France chairman Mr Jean-Cyril Spinetta, a conflict over fares broke out in early October when US carriers began to draw on the $5 billion (€5.5 billion) in federal compensation approved by Congress and President George W Bush.

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The rescue package also included $10 billion in loan guarantees for airlines devastated financially by the September 11th strikes on New York and Washington which left much of the American travelling public afraid to fly.

"We have already told the American authorities that we cannot accept that American companies use the support and the subsidies that they have received already for making unfair competition in the transatlantic market," Ms Palacio said.

On Tuesday, European transport ministers are due to meet with the world aviation crisis high on the agenda.

The Europan Commission has asked that it be given a mandate to negotiate on behalf of the 15 member states with the United States on air matters, instead of the present system where every country has bilateral links.

AFP