§ Mr. FearnTo ask the Secretary of State for the Environment, Transport and the Regions what assessment he has made of the impact on the competitive position of United Kingdom airlines of the provision by European Union Governments of state subsidies to their national airlines. [11178]
§ Ms Glenda JacksonState subsidies to national airlines are approved by the European Commission on a case-by-case basis. The impact of such aid on the competitive position of United Kingdom airlines is assessed by the United Kingdom Government following publication of the individual Commission decision in theOfficial Journal of the European Communities.
§ Mr. FearnTo ask the Secretary of State for the Environment, Transport and the Regions what steps he is taking to encourage other European Union countries to end state subsidies to their national airlines. [11179]
§ Ms JacksonApproval of state subsidy to national airlines is a matter for the European Commission. The United Kingdom has consistently opposed such aid since it threatens to distort competition and penalise efficient operators. The Commission has stated that its recent approval of aid to Alitalia is likely to be the last for a state-owned airline.