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ELFAA urges Commission to take action on state aid

Direct News Source

17-Mar-2010 The European Low Fares Airline Association (ELFAA) today called on the European Commission to carry out full and swift investigations into offending state aid cases concerning SAS, Malev, Spanair, and CSA.

"Although exposed to many of the same cost pressures as their legacy competitors, low fares airlines have sought no assistance from states," said Secretary-General of ELFAA, John Hanlon. "This is why we are looking to the Commission to ensure a level playing field by taking prompt and effective action to eliminate the serious distortions of competition, which result from state aid to ailing carriers."

Today's letter is the second to be addressed by ELFAA to the European Commission on this issue in five months, and it remains unclear whether any of the requested investigations have yet been launched. Meanwhile, since sending the earlier ELFAA letter of complaint, further state aid has been extended to SAS, Spanair and Malev. Unsurprisingly, given the unchecked actions of other states, the Czech Republic has made available a loan of €94 million to CSA.

"ELFAA has calculated that a combined total of €1.16 billion is being wasted by these governments in propping up these broken business models," continued Mr Hanlon. "This is a scandalous waste of public money at a time when Europe's economies can ill afford such largesse."

Mr Hanlon concluded: "ELFAA hopes that these cases will be the subject of swift and thorough investigations and that such aid will be repaid if it is found to be in contravention of EU state aid rules".