Thu, Apr 29, 2010
As Much As $3.3 Billion Lost Due To Eruption In Iceland
The executive body of the European Union says European
governments should help the Union's aviation industry recover from
more than $3 billion in losses following the eruption of an
Icelandic volcano.
European airlines said it was unnecessary to close large areas
of airspace over Europe after the eruption, which spewed a massive
ash cloud over the Continent. The Associated Press reports that
Eurocontrol has put together a team to determine if the reaction
was appropriate.
Transport Commissioner Siim Kallas (pictured, below) said
in a news release published on the EU Transport Commission website
that the Commission considers that Member States can rapidly
implement measures in favor of the air industry which do not
constitute state aid – notably loans and guarantees granted
at market conditions. Certain support measures could also be sen as
state aid from Member States to make good damage caused by natural
disasters or exceptional occurrences. If support from Member States
takes the form of state aid measures it must be granted on the
basis of uniform criteria established at European level. It cannot
be used to allow unfair assistance to companies which is not
directly related to the crisis. The Commission could produce a
communication to establish clear and precise guidance in this
regard.
Additionally, the Commission will recommend that slot
coordinators take into account the effects of the crisis, so that
airlines can keep slots which were not used during the crisis and
the period immediately afterwards. The Commission will not object
to Member State measures to waive operational restrictions for
short periods – for example flight restrictions – until
the return to normality of the overall network and the repatriation
of all stranded passengers. Finally, the Commission will recommend
to Member States and to Eurocontrol to assess immediately the
possibility to defer the actual payments for en-route charges for a
defined period of time. This is an important measure to provide
some relief to immediate cash flow problems. Member States should
take all appropriate steps in relation to their air navigation
service providers.
Still, member states were cautioned not to give aid other than
as outlined by the EU. "This must be granted on the basis of
uniform criteria established at the European level," Kallas said.
"It cannot be used to allow unfair assistance to companies which is
not directly related to the crisis."
The eruption caused the cancellation of over 100,000 flights,
and there were as many as 10 million passengers who were unable to
reach their destinations.
The event has also led to a call for an emergency meeting of EU
transport ministers on May 4th to discuss sweeping reforms in the
European air traffic system. "Europe needs a single regulator for a
single European sky," Kallas said. He added that, given fast-track
authority, the first phase of such a consolidated system ... called
"Single European Sky" ... could be up and running by the end of
this year.
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