The European Commission expressed doubts about some of the compensation (approximately € 5 million) granted to Olympic Airways and Aegean Cronus by the Greek government following…
The European Commission expressed doubts about some of the compensation (approximately € 5 million) granted to Olympic Airways and Aegean Cronus by the Greek government following the attacks on 11 September 2001 in the USA. The Commission considers that the compensation for flights cancelled after 14 September 2001 and for losses in areas not closed to air traffic seems to be incompatible with the European legislation on State aid.
The Commission`s decision is fully in line with its communication of 10 October 2001 on The repercussions of the terrorist attacks in the United States on the air transport industry. The Commission had accepted in this communication that some types of aid, including aid for insurance and losses suffered through the closure of part of the airspace or aid to make good the damage caused by natural disasters or exceptional occurrences, could be granted to the air transport industry by way of exception.
The Commission had nonetheless placed a number of conditions on the authorisation of such emergency aid schemes. Greece`s €5 million scheme did not appear to comply fully with these criteria. The formal investigation by the Commission will focus on the following points:
- As regards part of this amount, Greece was unable to justify any direct link between the losses for which compensation could be given and actual flight restrictions, as required by other Commission decisions on the subject. The losses in question concern, in particular, cancellations of flights to destinations closed to traffic or by passengers in transit from or to the transatlantic network on the days in question.
- Part of the aid concerns 15 and 16 September 2001, i.e. outside the period covered by the Commission communication. The Commission has adopted decisions already against schemes extending beyond that period.
The Commission is continuing to examine the compatibility of other emergency aid schemes notified by other Member States.
The Commission authorised similar schemes put forward by France, the UK and Germany in decisions dated 30 January, 12 March and 2 July 2002 respectively.
A negative decision for the period beyond 14 September was also taken against France on 11 December 2002. The decision taken on Austria on 30 April 2003 also ruled the part of the aid concerning 15 September 2001 incompatible with the common market.
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