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26th April, 2006

Losses to airline companies as a result of 9/11: the Commission accepts part of the measures taken by Greece

IP/06/530

Brussels, 26 April 2006

Losses to airline companies as a result of 9/11: the Commission accepts part of the measures taken by Greece

The European Commission today decided to authorise some €2 million of aid granted by Greece to Olympic Airways in compensation for losses resulting from the closure of airspace between 11 and 14 September 2001. However, in line with established practice in respect of other countries the Commission is unable to accept measures taken to compensate for flights not carried out after 14 September 2001. The total amount to be recovered is accordingly about €2.8 million.

In a communication on the repercussions of the terrorist attacks in the United States on the air transport industry,[1] adopted in October 2001, the Commission accepted certain types of aid, including aid to insurance companies and aid to cover the costs resulting from the partial closure of airspace.

The Greek aid scheme totalled around €5 million. The formal investigation conducted by the Commission following its decision of 27 May 2003[2] revealed that Greece had justified a direct link between the losses for which compensation could be given and actual flight restrictions, in an amount of €2 million of aid transferred to Olympic Airways. The particular losses concerned were incurred through cancellations of flights to the United States, Canada and Israel, whose airspaces were totally or partially closed to traffic during the days in question.

On the other hand, another portion of the aid transferred to Olympic Airways either concerns flights not carried out after 14 September 2001 (i.e. beyond the period referred to in the Commission’s communication) and has already been the subject of a final negative decision[3] for other EU Member States, or it has not been justified by Greece.

Finally, Greece has supplied no documents to substantiate the aid of around €140 000 paid to Aegean Cronus, and the Commission has likewise decided to recover that aid.

[1] COM(2001) 574, available at: http://eur-lex.europa.eu/LexUriServ/site/en/com/2001/com2001_0574en01.pdf [2] OJ C 199, 23.8.2003, p. 3 [3] A negative decision was taken against France on 11 December 2002 for the period beyond 14 September. The decision of 30 April 2003 concerning Austria also held the part of the aid relating to 15 September 2001 to be incompatible.

 
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