COMMISSION’S €1.2 BILLION WASHOUT GIVES GREEN LIGHT TO HIGH FARES
Ryanair, Europe’s No. 1 low fares airline today (June 7th 2005) called on the European Commission to admit that it had broken its own rules on state aid by allowing Alitalia to benefit from a massive €1.2 BILLION bail out.
In 1997 when the European Commission bent its own rules by giving €1.5 billion in state aid to Alitalia it was called a once off, last time occurrence. However by 2002 the European Commission was bending its own rules again by allowing €1.4 billion of State Aid for Alitalia, making a mockery out of the competitive process that lowers airfares for consumers by forcing badly run airlines to address their problems.
Now in 2005 the Commission has caved in to the high fare lobby by giving a green light to allow Alitalia a further €1.2 billion bail out.
Michael Cawley, Ryanair’s Deputy CEO said:
“Only the European Commission could give aid on a once off, last time basis THREE times to the same airline.
“The European Commission’s attempts to cover this up as being something other than illegal state aid to Alitalia are a farce. In doing so it has broken all of its rules that propose a level playing field of competition for all European airlines. Without real competition Alitalia and airlines like it will increase their already high airfares and feel no compulsion whatsoever to improve incompetent management.
“The European Commission is supposed to encourage competition between airlines to improve efficiency and lower air fares for passengers across Europe. Clearly, today’s one-sided finding in favour of the most inefficient airline in Europe reduces the Commission’s own guidelines on state aid to nothing more than a shambles by discouraging competition and encouraging higher airfares.
“No wonder the French and Dutch electorate have recently voted No to this sort of EU double-speak. This idiotic decision highlights just how out of touch Brussels is with the realities of what consumers want – efficient, low cost airlines with low fares.
Cheers,
White Cap
