Luftfart1
7th Feb 2013, 12:49
07.02.2013
Thursday 7 February 2013, Brussels - For the third time in as many years, the European Low Fares Airline Association (ELFAA) has requested the European Commission to staunch the flow of illegal State aid to ailing flag carrier, SAS.
Following earlier unsuccessful injections of State aid, which failed to halt the carrier’s precipitous slide toward bankruptcy, the stake-holding governments at the end of 2012 encouraged the grant by banks of revolving emergency credit worth 3.5 billion SEK (approximately 400 million Euros) to SAS. This effectively meant that the states were guaranteeing this action by the banks.
ELFAA Secretary-General John Hanlon said: “The Commission has a duty to investigate such acts and to intervene if they are found to breach EU State aid rules.” The credit concerned is being deployed to support an ambitious programme of fleet renewal and expansion of the SAS network, significantly distorting competition with SAS’s competitors, which have no recourse to such state support.”
Following submission of a formal legal complaint, ELFAA is looking to the Commission to investigate the latest case of State aid and to request repayment by SAS of any funds, which are found to be in breach of the spirit and letter of State aid rules.
Paratluftfart6 - Parat Luftfart - Hjem (http://www.paratluftfart.com/Fullstory.aspx?m=31&amid=12025)
Thursday 7 February 2013, Brussels - For the third time in as many years, the European Low Fares Airline Association (ELFAA) has requested the European Commission to staunch the flow of illegal State aid to ailing flag carrier, SAS.
Following earlier unsuccessful injections of State aid, which failed to halt the carrier’s precipitous slide toward bankruptcy, the stake-holding governments at the end of 2012 encouraged the grant by banks of revolving emergency credit worth 3.5 billion SEK (approximately 400 million Euros) to SAS. This effectively meant that the states were guaranteeing this action by the banks.
ELFAA Secretary-General John Hanlon said: “The Commission has a duty to investigate such acts and to intervene if they are found to breach EU State aid rules.” The credit concerned is being deployed to support an ambitious programme of fleet renewal and expansion of the SAS network, significantly distorting competition with SAS’s competitors, which have no recourse to such state support.”
Following submission of a formal legal complaint, ELFAA is looking to the Commission to investigate the latest case of State aid and to request repayment by SAS of any funds, which are found to be in breach of the spirit and letter of State aid rules.
Paratluftfart6 - Parat Luftfart - Hjem (http://www.paratluftfart.com/Fullstory.aspx?m=31&amid=12025)