EC warns no aid for airlines

The European Commission has warned that Britian’s airline industry can expect no special favours from Brussels following the post-September 11 downturn in traffic.

European Commission vice-president Loyola de Palacio has said that consolidation of the European airline sector was inevitable and that the EC remained opposed to state aid for ailing industries, especially since Belgian carrier Sabena had not been allowed to receive state aid, and it would be unfair to help anyone else.

De Palacio said the 14 national flag carrier airlines in Europe was a number that is not sustainable in the future.