European Airlines Lobby for Assistance
BRUSSELS, Belgium (AP) - Europe's ailing airlines appealed Thursday to the European Union to help them survive the impact of last week's terrorist attacks on the United States.
Airline representatives asked the EU's Transport Commissioner Loyola de Palacio for a relaxation of restrictions on subsidies to allow for compensation packages and exemptions from antitrust rules so companies can work together to pull out of the crisis.
EU officials said they would look at the proposals and other measures to help, but insisted there could be no cash injections from the EU or any lifting of the ban on governments bailing out loss-making flag carriers.
``The EU does not have the budget for this, but faced with this unforeseen situation there are some one-time solutions that can be considered,'' de Palacio said.
EU officials stressed any compensation would have to be temporary and strictly limited to cover immediate losses caused by the terror attacks.
Airline representatives said they were not seeking a return to the days when European governments kept their carriers aloft with state funding. ``We don't want subsidies, we don't want handouts,'' said Jean Cyril Spinetta, president of the Association of European Airlines.
However he argued a more flexible application of EU rules could help his members, who estimate they lost about $30 million a day when they couldn't fly to the United States last week.
In the longer term, the attacks on the World Trade Center and the Pentagon have left airlines facing the prospect of fewer passengers coupled with higher security, fuel and insurance charges. With many European carriers already struggling to survive in an increasingly competitive market, there are fears many airlines could go under.
Underlining the dire situation, Europe's largest carrier British Airways announced it would cut 7,000 jobs and reduce operations by 10 percent because of the expected slowdown, while Germany's Lufthansa froze plans to buy new jumbo jets and said it would stop hiring new workers.
Palacio agreed the EU would set up a working group with the airlines to look at solutions, including the suggestion that antitrust rules be relaxed so companies can cooperate on reducing capacity. However EU officials insisted such moves would have to be strictly controlled.
EU officials said they would be looking closely at the U.S. government's plans for a multibillion dollar aid package to help its struggling airlines, to see if they need to be matched in Europe.
``We don't want a situation where European airlines are placed in a disadvantageous position,'' said de Palacio who is scheduled Monday to meet U.S. Transportation Secretary Norman Mineta in Washington.
Originally published September 20, 2001.
