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EU FMs against further aid to airlines industry
Finnish Finance Minister Sauli Niinisto Tuesday said European Union finance ministers don`t support further aid to E.U. airlines.
"The problem is that if you give state aid to all companies, the situation stays as it is," Niinisto told reporters ahead of a meeting of E.U. finance ministers.
"If there is a lot of competition and maybe a lot of capacity, giving aid doesn't change the situation at all."
Finance ministers will consider the financial situation of EU airlines following last month's attacks in the US. Last week the EU Commission, the EU executive branch, said governments may offer limited compensation to
airlines for canceled flights following the attacks.
However, the airlines have said the measures don't go far enough to help the industry, which is expected to see a sharp drop in revenue as passenger traffic
declines and insurance and security payments rise.
Bureau Report