MEPs to approve new weapon against unfair

12.00.00am GMT Wed 10th Mar 2004

MEPs are tomorrow expected to approve new EU measures to impose duties on non-European airlines, which use government hand-outs to compete unfairly with European airlines.

West Midlands Euro-MP Liz Lynne has welcomed the new legislation, which will affect non EU Airlines using Birmingham International Airport. It has been steered through the European Parliament by Liz's Liberal Democrat colleague Nick Clegg MEP. Speaking ahead of tomorrow's vote, she commented:

"Since 11 September 2001, US airlines in particular have benefited from huge government subsidies which have allowed them to lower prices artificially on trans-Atlantic routes in order to win over customers. This has hit competing European airlines hard, especially since they have to comply with stringent EU state aid rules."

"The days are long gone when EU airlines were protected from international competition by dollops of public subsidy and US airlines had to survive unaided. The case for protecting EU airlines from the effects of excessive subsidies to non EU airlines is now clear."

"Liberal Democrats intervened in the drafting of this legislation to ensure that this measure is not used in an arbitrary or protectionist manner. I welcome the fact that European Transport Ministers have taken note of these concerns. It is especially important that the interests of consumers are borne in mind when bringing this instrument into play."

"I am pleased that the Commission will now have to come forward with a detailed methodology for calculating unfair prices. This should ensure that such practices are clearly distinguished from normal competitive pricing, which benefits consumers directly, in terms of lower ticket prices."

According to the new regulation, individual airlines can complain directly to the Commission if they feel that they are the victim of unfair competition from non-European airlines. The Commission will then conduct a time-limited investigation. If it finds that unfair pricing has occurred, it will proceed to impose duties on the offending airlines.

ENDS