EU supports relief for airlines
By Slobodan Lekic |
April 28, 2010, Wednesday
|
Print Edition
Print Edition
EUROPE should help its aviation sector recover from up to 2.5 billion euros (US$3.3 billion) in losses from the Icelandic volcano ash crisis by combining sweeping reform of air traffic control with short-term relief such as lifting bans on nighttime flights, the EU's executive body said yesterday.
The continent's air traffic control agency also has assembled a team of experts to determine whether authorities reacted appropriately to the ash threat, which airlines said did not warrant a lengthy closure of large chunks of airspace. The experts will carry out a comprehensive review of the actual threat posed to aviation by the ash cloud and of the effectiveness of airspace closure as a response.
EU Transport Commissioner Siim Kallas said the European Commission was asking member nations to provide airlines immediate relief with measures such as making market-rate loans and deferring payments for air traffic control services. Under normal circumstances, that would be considered illegal aid under EU rules.
Lifting restrictions on nighttime flights meant to maintain quiet in neighborhoods around airports would help airlines repatriate stranded passengers and get delayed freight deliveries to their destinations, he said.
There should also be no loss of airports slots as a result of the ash crisis, Kallas said. Normally, slots are forfeited if left unused.
"Now, as we are getting back to normal our focus can shift to relief measures for the industry," Kallas said. "The Commission is also proposing structural changes to ensure we do not face this situation again."
Kallas warned EU member states not to grant airlines state aid other than loans at market rates or guarantees as a way of improving their immediate cash flow problems.
"This must be granted on the basis of uniform criteria established at the European level," he said. "It cannot be used to allow unfair assistance to companies which is not directly related to the crisis."
The closure of a large chunk of European airspace due to the volcanic eruption caused the cancellation of more than 100,000 flights, and left 10 million passengers stranded.
Kallas said he had briefed the European Commission about the economic impact of the weeklong crisis. He said it had caused losses estimated at between 1.5 billion euros and 2.5 billion euros.
The continent's air traffic control agency also has assembled a team of experts to determine whether authorities reacted appropriately to the ash threat, which airlines said did not warrant a lengthy closure of large chunks of airspace. The experts will carry out a comprehensive review of the actual threat posed to aviation by the ash cloud and of the effectiveness of airspace closure as a response.
EU Transport Commissioner Siim Kallas said the European Commission was asking member nations to provide airlines immediate relief with measures such as making market-rate loans and deferring payments for air traffic control services. Under normal circumstances, that would be considered illegal aid under EU rules.
Lifting restrictions on nighttime flights meant to maintain quiet in neighborhoods around airports would help airlines repatriate stranded passengers and get delayed freight deliveries to their destinations, he said.
There should also be no loss of airports slots as a result of the ash crisis, Kallas said. Normally, slots are forfeited if left unused.
"Now, as we are getting back to normal our focus can shift to relief measures for the industry," Kallas said. "The Commission is also proposing structural changes to ensure we do not face this situation again."
Kallas warned EU member states not to grant airlines state aid other than loans at market rates or guarantees as a way of improving their immediate cash flow problems.
"This must be granted on the basis of uniform criteria established at the European level," he said. "It cannot be used to allow unfair assistance to companies which is not directly related to the crisis."
The closure of a large chunk of European airspace due to the volcanic eruption caused the cancellation of more than 100,000 flights, and left 10 million passengers stranded.
Kallas said he had briefed the European Commission about the economic impact of the weeklong crisis. He said it had caused losses estimated at between 1.5 billion euros and 2.5 billion euros.
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