...and here is the reaction of
ELFAA (not unexpected of course):
15 November 2010, Brussels – The European Low Fares Airline Association (ELFAA) sent a strongly-worded letter to the European Commission last Friday calling on it to carry out an urgent and full investigation into unfair and illegal state aid infringements in the airline sector.
“We believe that the recent unchecked infusions of funding to airlines in Europe represent flagrant breaches of European legislation with respect to competition and state aid,” said ELFAA Secretary General John Hanlon.
“This continuing use of taxpayers’ money to bail out ailing airlines places an unfair burden on competitors and is an irresponsible use of government funds, particularly in these times of fiscal austerity. It cannot be allowed to continue.”
The latest case concerns the decision by Spain’s Generalitat Executive Council (Cabinet) at its meeting of 2 November to authorise the Public Infrastructures Corporation (CIMALSA) to take a €20 million stake in Spanair.
This makes the Generalitat the airline’s main shareholder and ensures that Spanair becomes a state-controlled company in all but name.
“ELFAA views this latest development in Spain as being in blatant violation of European competition legislation and state aid rules,” continued Mr Hanlon.
“We urge the Commission to act swiftly to rectify this clear infringement of Community law and we will continue to remind it of its obligations to hold up European rules as long as such instances continue to go unchecked.”