WRITTEN QUESTION E-3310/01

by Ioannis Souladakis (PSE) to the Commission

(28 November 2001)

Subject: The current crisis in the airline and tourism industry of Europe

The recent crisis in the air transport industry, which has been heavily damaged by the attack in New York on 11 September, the accidents at Milan airport, the two air crashes in the Black Sea and JFK airport and the bankruptcy of Sabena, has resulted in thousands of air industry employees being laid off and a worsening financial situation for the tourism industry in Europe.

In order to avoid any further damage to these two sectors, which are very important for the European economy and affect its future prospects (higher unemployment, recession, etc):

1. Does the Commission consider that the US Government's heavy financial support for the American airlines is putting the European airlines in a weaker position while the Commission does not permit similar financial support?

2. What action is the Commission taking to bring staff who have been laid off from European airlines back into the labour market?

3. Does the Commission consider that the new taxes many European airports have applied since the terrorist attack in New York will do great damage to the airline industry's ticket policy and to tourism because of the resultant higher prices?

4. Is the Commission taking any serious measures to make the European tourist market more attractive and less expensive since the start of the crisis in the sector?

5. Is the Commission considering any short- or long-term programme to save Europe's airline industry from any further bankruptcies?

6. What specific measures is the Commission taking to prevent further deterioration of the situation in the airline and tourism industries, which is also seriously affecting the European air industry manufacturing sector?

7. What is the Commission's current policy on slots, which seem to be very important for facilitating air transport over European airspace?

Answer given by Mrs de Palacio on behalf of the Commission

(17 January 2002)

The current situation in the air transport industry is a result of a combination of structural and cyclical factors and was seriously worsened by the terrorist attacks of 11 September 2001. The Commission adopted on 10 October 2001 a Communication on the repercussions of the terrorist attacks in the United States on the air transport industry(1), which constitutes the basis for its policy in this field.

1. The Commission, although recognising that the impact of the 11 September attacks is not the same on both sides of the Atlantic, is concerned that the massive financial aid given by the United States government to the American air transport industry, worth in total 16,8 billion, could lead to serious distortions. The Commission has made contact with the American authorities to try to minimise any possible predatory pricing that might result in transatlantic markets. However, the lack of a mandate for EU/US negotiations in air transport prevents the Commission from playing a more active role in this field.

2. The Commission is ensuring that its legal and financial instruments as well as the social dialogue are functioning for the benefit of the laid off workers. Among other actions, the Commission has invited social partners and national experts to a workshop on 3 December 2001, to discuss measures taken at various levels as well as future action. These initiatives will concern in particular the fields of training and access to training facilities, mobility and mutual recognition of licences for several categories of workers, including pilots.

3. The Commission is aware that reinforced security measures put in place after the attacks of 11 September 2001 have resulted in an additional financial burden for the industry. It is of the opinion that such measures, addressing attacks directed against society as a whole, should be borne by Member States, with due respect to the Treaty rules that ensure a level playing field for Community air carriers.

4. The Commission refers to its Report of 13 November 2001, Follow-up of the European Council of 21 September: the situation in the European tourism sector(2). While its Communication Working together for the future of European tourism(3), of the same day, aims at making the European tourist market more attractive, any approach to make it less expensive is a choice to be taken by the enterprises of the sector. However, in general, Europe's competitive advantages on the global travel market are not to be seen in terms of low prices, but of a high quality and sustainable tourist product, benefiting from the highest density of tourist attractions world-wide and avoiding long distances to enjoy an optimal tourist experience.

5. The Community, contrary to the American administration, does not have at its disposal financial resources for supporting air transport (or other) industry. In its 10 October Communication it outlined in which way it intends to apply the state aid rules, should Member States wish to take such measures.

6. The Commission refers to the above mentioned documents of 10 October 2001 and 13 November 2001.

7. Following the Communication of 10 October 2001 in which the Commission considered that the closure of American airspace and the subsequent changes to services constitute exceptional circumstances, the Commission has proposed to modify Council Regulation (EEC) No 95/93 of 18 January 1993 on common rules for the allocation of slots at Community airports(4) in the aim to ensure that all co-ordinators apply the regulation uniformly so that airlines do not risk losing their unused slots during the summer 2001 and the winter 2001/2002 scheduling seasons.

(1) COM(2001) 574 final.

(2) COM(2001) 668 final.

(3) COM(2001) 665 final.

(4) OJ L 14, 22.1.1993.