EU approves time-limited state aid for airlines

The European Commission has approved a package of time-limited state aid for EU airlines in response to the crisis in the sector…

The European Commission has approved a package of time-limited state aid for EU airlines in response to the crisis in the sector caused by the US attacks last month.

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[Measures to] compensate for damage directly linked to the exceptional circumstances... affecting the aviation industry after the events of September 11th.
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European Commission

The Commission said in a statement it had authorised measures to "compensate for damage directly linked to the exceptional circumstances... affecting the aviation industry after the events of September 11th".

Member states would be allowed to provide state aid with insurance premiums, meet extra security costs and compensate airlines for direct losses incurred due to the four-day closure of US airspace after the attacks on New York and Washington.

It said EU competition law allowed the Commission to take account of changes in economic conditions. Member states would be allowed to act in concert to avoid discriminatory situations.

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Fine Gael’s public enterprise spokesman Mr Jim Higgins criticised the EU initiative on the aviation industry for not going far enough.

Mr Higgins said: "The initiative was minimalist and does little to address the current Aer Lingus crisis which is far wider than direct fallout from the Spetember 11th atrocities".

He said: "What is particularly worrying is the fact that it pre-empts any possible decision by the Transport Ministers may wish to take at its Council meeting next week."

He called on the Minister to take the strongest possible line with her transport colleagues next week to ensure the best possible deal for Aer Lingus.