Commission may examine aid to Sabena

The European Commission said yesterday it was considering opening a formal state aid probe into a cash injection from the Belgian…

The European Commission said yesterday it was considering opening a formal state aid probe into a cash injection from the Belgian government for national airline Sabena.

The Commission said it was considering the probe because of uncertainty whether Swissair Group, which owns 49.5 per cent of Sabena, would respect commitments it made in January with the Belgian government, including a €250 million capital increase for Sabena.

Belgium, which owns 50.5 per cent of Sabena, agreed to contribute €100 million of the increase, while Swissair also reaffirmed its commitment to raise its stake in Sabena to 85 per cent. Swissair later wanted to exit the agreement as part of its restructuring, offering instead €305 million. Belgium and Sabena rejected the offer and the two have begun legal action against the Swiss carrier.

"Based on this situation, we prefer to cover the legal aspect by opening a formal investigation, which clearly does not mean that there is state aid or there is not state aid. This is exactly what the investigation will have to solve," said Commission spokesman Mr Gilles Gantelet.