ELFAA denounces latest case of state aid to Spanair

The European Low Fares Airline Association
(ELFAA) has written to the Commission for the fourth time to highlight the
flagrant and unfair state aid infringements with regard to the Catalan
government and the ailing airline Spanair.

“These successive “loans” to Spanair are clear breaches of state aid rules
and seriously distort competition” said ELFAA Secretary-General John
Hanlon. “We urge the Commission to act swiftly to rectify this clear
infringement of Community law, and we will continue to remind it of its
obligations to uphold European rules and not allow such clear breaches to
continue to go unchecked.”

The latest episode involves the Catalan Regional Government which
announced on 25 January that it has authorised the Institut Catala de
Finances to grant yet another emergency loan of €10.5 million to Spanair
through one of the shareholders of the company, Fira Barcelona. The
regional Government also advises of a possible further “loan” of € 9.5 million
to follow.

The Government spokesman, seeking to justify to the media such
inappropriate support for Spanair, admitted: “either the Government
carried out actions or Spanair would have collapsed”.

“ELFAA members, are having to compete on very unequal terms with a
carrier, which exhibits no sign of being able to repay any of the previous
cases of improper state aid, let alone this one,” continued Mr Hanlon in the
letter dated 1 February.

“This continuing use of taxpayers’ money to bail out failing airlines is an
irresponsible use of government funds, particularly in these times of fiscal
austerity. It cannot be allowed to continue.”