ELFAA: Cash handouts to Spanair are flagrant breaches of EU law

The European Low Fares Airline Association
(ELFAA) is forced to condemn once again the latest round of cash handouts
to ailing airline Spanair, by the regional government and City Council
of Barcelona – this time to the tune of € 25 million.

“This latest injection to keep Spanair afloat is not only a waste of valuable
public funds, it is also a flagrant breach of European legislation with
respect to competition and state aid,” said ELFAA Secretary General John
Hanlon.
The future of Spanair appears to depend on a partial take-over by Qatar
Airways, although this has so far failed to materialise. In the interim the
airline continues to rely on public money, with an estimate that – to date –
€120 million has been poured in with no obvious benefit to the taxpayer
and to the detriment of free and fair competition.
“ELFAA is currently preparing a formal submission to the European
Commission regarding these huge amounts of state aid, and we hope and
expect the Commission will take the necessary action,” continued Mr
Hanlon.
Barcelona is in the fortunate position of enjoying a vibrant and competitive
marketplace for air travel. With Spain on the edge of an economic and
financial precipice, it seems doubly unjust to the Spanish people that their
own public money is being ploughed into failed business models, which
deserve to be put out of their misery.