92002E2072

WRITTEN QUESTION E-2072/02

by Doris Pack (PPE-DE) to the Commission

(12 July 2002)

Subject: Subsidies for German airlines

Does the Commission intend to approve the compensation payments of EUR 71 million to German airlines (EUR 70 million to Lufthansa and EUR 1 million to Deutsche BA), despite the preferential treatment received by both companies compared to SMEs?

Answer given by Mrs de Palacio on behalf of the Commission

(3 September 2002)

The Commission has already, on 2 July 2002, authorised the aid scheme to compensate German companies for the losses caused by the closure of certain sections of airspace between 11 and 14 September 2001. The Commission confirms that compensation of up to EUR 71 million is available under the scheme.

The Commission decision is fully in line with the communication of 10 October 2001 The repercussions of the terrorist attacks in the United States on the air transport industry(1), in which it accepted that some types of aid, including those for costs caused by the closure of airspace, may be awarded exceptionally to the air transport sector to make good the damage caused by natural disasters or exceptional occurrences (in the words of Article 87(2)(b) of the EC Treaty).

Nonetheless, the Commission took the view that a number of objective conditions had to be met before authorising such emergency aid schemes.

The German scheme meets all the required criteria:

- compensation is paid only for the costs incurred during the four days in question following the grounding of air traffic decided by the American authorities,

- compensation is calculated objectively on the basis of the loss of revenue during that period, adjusted according to the costs avoided or additional costs incurred,

- compensation is paid in a non-discriminatory manner to all German airlines.

(1) COM(2001) 574 final.