WRITTEN QUESTION E-2790/01

by Alexandros Alavanos (GUE/NGL) to the Commission

(9 October 2001)

Subject: Air transport problems and Olympic Airways

Following the terrorist attack in the USA and the Bush Administration's decision to grant the country's airlines $15 billion in aid, a growing number of governments worldwide are deciding to assist their air carriers to overcome the immediate problems of soaring insurance premiums and the projected slump in traffic.

1. What measures will the Commission take to bolster small European air carriers to enable them to survive in the new international environment which calls for additional outlay on insurance? Is it considering the possibility of using state aid to cover the extra expenditure incurred?

2. Has the situation of the smaller airlines, such as Olympic Airways, been taken into consideration, given the danger of their being snapped up at bargain prices by non-viable buyers? Will the Commission recommend the postponement of all privatisation processes until the turbulent situation in the air transport industry has calmed down?

Answer given by Mrs de Palacio on behalf of the Commission

(3 December 2001)

Following the terrorist attacks in the United States on 11 September 2001, the Commission adopted a Communication(1) on 10 October 2001 on the repercussions of these events on the air transport industry in Europe. In view of the magnitude of the crisis, the Commission considered the adoption of certain emergency measures for a temporary period to deal with the exceptional circumstances in which the industry finds itself since the 11 September 2001.

In particular, the Commission announced that measures taken by Member States in the current context constituted state aid and that they would have therefore to be duly notified to the Commission. It further announced that it would give favourable consideration to measures to compensate airlines for losses resulting directly from the four-day closure of American airspace; that it would examine the assumption by Member States of the additional costs of insurance

for a maximum period of one month and the temporary continuation of intervention by Member States until the end of 2001, should the need for such cover persist and on condition that this does not place the airlines in a more favourable position than prior to the withdrawal of their insurance cover. With regard to security, the Commission considered that the reinforcement of certain security measures should be borne by the Member State.

Also, in application of the anti-trust rules of the EC Treaty, the Commission announced that it would give favourable consideration to certain agreements between airlines, such as capacity coordination agreements intended exclusively to maintain a regular service on thinner routes or at off-peak times of the day. In addition, the Commission announced that it would monitor the developments and that it would reexamine the measures announced in its Communication if there was such a need.

In the context of the Communication, the Commission took into consideration the situation of smaller airlines and their continued moves to restructure. The Commission leaves the choice of privatisation or not to the Member State. It cannot recommend either privatisation or impose a stop on privatisation.

The Communication of the Commission was presented to the Council of Ministers for Transport at their meeting in Luxembourg on 16 October 2001 where it received their acknowledgement and support for the proposed measures.

(1) COM(2001) 574 final.