WRITTEN QUESTION P-2041/02 by Alexandros Alavanos (GUE/NGL) to the Commission. State aid — preferential treatment of Community airline.
Date: 2002-07-05
Institutions: European Parliament, Provisional data
Subjects: Greece, Italy, State aid, aid for restructuring, air transport, capital increase, competition policy, control of State aid, transport company

12.12.2002

EN

Official Journal of the European Communities

C 309 E/191

(2002/C 309 E/219)

WRITTEN QUESTION P-2041/02

by Alexandros Alavanos (GUE/NGL) to the Commission

(5 July 2002)

Subject: State aid (cid:1) preferential treatment of Community airline

In a recent meeting, the Commission decided to approve aid of EUR 1,4 billion to Alitalia and to conclude
proceedings in respect of previous aid to the same airline of EUR 129 million.

This decision met with negative comments in the European press which described it as biased in favour of
Alitalia compared with the uncompromising position adopted by the Commission when examining similar
cases of state aid in relation to other European airlines.

With this decision, is the Commission introducing a new, more flexible strategy towards state aid?

In what spirit will
it approach the investigation being conducted into possible state aid to Olympic
Airways, the sum involved being EUR 19,5 million, i.e. 75 times lower than the corresponding figure for
Alitalia?

Is the Commission prepared to support a restructuring programme to improve the competitiveness of
Olympic Airways in a public sector context, if the Greek Government makes such a request, which is
possibly the most realistic scenario for saving OA in view of the situation on the international air transport
market?

Answer given by Mrs de Palacio on behalf of the Commission

(1 August 2002)

On 19 June 2002, the Commission gave the go-ahead for two financial measures concerning the Italian
airline Alitalia. It authorised the transfer of the third tranche of EUR 129 million of restructuring aid
approved in 1997 as compatible with the EC Treaty, and decided that the capital increase of up to EUR 1,4
billion to be put to the company’s shareholders did not constitute State aid.

As regards transferring the third tranche, the Commission found that the company had honoured its
the
economic and market conduct undertakings of 1998. Though the transfer had been deferred,
Commission was satisfied that the company had largely kept its promises in the interim.

As regards the plan to increase capital submitted in April 2002, also referred to by the Honourable
Member, the Commission considers that the State participation entirely satisfies the criterion of an investor
in a market economy. The operation is intended for the public and private shareholders and for the private
sector at the same time, and will make a significant contribution (38 %).

The Commission’s green light for Alitalia aid therefore stems from detailed study of the airline’s situation
and does not call into question the Commission’s policy on State aid for restructuring airline companies
based on the ‘one time, last time’ one-off payment principle.

Accordingly, in making its final decision after the investigation it launched on 6 March 2002 into whether
State aid was given to the Greek airline Olympic Airways, the Commission will weigh up the case on its
own merits in accordance with the EC Treaty, favouring as always the measures least likely to distort
competition between airlines, and applying if necessary the market economy investor criterion.