WRITTEN QUESTION E-3569/01

by José García-Margallo y Marfil (PPE-DE) to the Commission

(8 January 2002)

Subject: Consequences of the attacks of 11 September for the aviation and tourism sector

There is no doubt that one of the sectors most badly affected by the terrorist attacks on New York and Washington is the air transport sector.

It is also true that the crisis affecting airlines preceded that date, but growing public fear of air travel and the increased cost of insurance have placed fresh burdens on the companies concerned.

At the time, the Commission authorised the granting of aid in a series of specific cases for a set period in order to cover the losses incurred for the time during which aircraft were grounded. Since 11 September, the United States has approved a series of subsidies which place European airlines in a situation of unfair competition.

Can the Commission say what developments have taken place regarding this US aid in the months since 11 September?

Is the Commission aware of the publicity campaign Get America travelling again and the Travel America Now Act of 2001 adjusting the tax system in order to provide relief for the air industry?

Can the Commission say whether the Airport Security Bill has now been approved and what effects this legislation will have for European citizens and airlines?

Answer given by Mrs de Palacio on behalf of the Commission

(26 February 2002)

The Commission has been monitoring the assistance given by the American government to the air transport industry. American air carriers were affected to a much greater extent by the events of September 2001 and it was appropriate for them to receive assistance. However, the scale of the assistance offered gave some cause for concern in case it placed American air carriers in a stronger position than their European counterparts. In November 2001, the Vice-President of the Commission responsible for Transports and Energy wrote to her counterpart, Mr Mineta, the Secretary of Transportation, to express this concern.

Subsequently the Commission has proposed to the United States greater transatlantic cooperation and information exchange on the granting and monitoring of State aid. However, the United States are cautious about formal cooperation and the Union is limited in its approach by the refusal of the Council to agree a mandate for full Community-level negotiations with the United States in the air transport field. Contacts will therefore continue on an ad-hoc basis.

The Commission has noted the existence of a publicity campaign to encourage tourism to the United States, which has been funded by contributions from American industry. On a legislative level, the Commission understands that various proposals were made last year to adjust the tax system in order to encourage American citizens to travel, but that none were passed into law by the end of the last Congressional session.

As one of the implementing provisions of the Aviation and Transportation Security Act, which was signed on 19 November 2001, the United States' Customs Service has issued on 31 December 2001 an Interim Rule requiring that each air carrier, foreign and domestic, operating a passenger flight in foreign air transportation to the United States shall transmit to the United States' customs prior to arrival a passenger and crew manifest. These measures need to be implemented in conformity with the requirements of Directive 95/46/EC of the Parliament and of the Council of 24 October 1995 on the protection of individuals with regard to the processing of personal data and on the free movement of such data(1).

(1) OJ L 281, 23.11.1995.