newstodate.aero
Apr 26, 2010 (newstodate): In contrast to many other airlines that suffered during the recent Icelandic volcano ash troubles, Finnair maintains its opposition to any sort of state aid to airlines.
Several already under-financed airlines have pathetically turned to states for economic compensation for their losses, disregarding the general notion that state intervention will eventually hamper fair competition.
Finnair had to cancel over 1,700 flights during last week, disrupting the travel of over 140,000 passengers. The cessation of traffic for the week and the process of recommencing it are estimated to cause a loss of 20 million euros to the company.
But still Finnair is not begging for state subsidies.
-Companies in a weaker economic condition are making strong demands for help. A subsidy stampede would distort competition, because the risk of airlines using the system for wider support would be great. We are already seeing support that contravenes the EU's state-aid rules, says Mika Vehvilainen, Finnair CEO.
-We presume that the authorities will check immediately if the companies demanding support fulfill the conditions of their operating licenses. The cessation of operations for a week should not destabilize the solvency of a company that meets the EU requirements, says Mr Vehvilainen
Several already under-financed airlines have pathetically turned to states for economic compensation for their losses, disregarding the general notion that state intervention will eventually hamper fair competition.
Finnair had to cancel over 1,700 flights during last week, disrupting the travel of over 140,000 passengers. The cessation of traffic for the week and the process of recommencing it are estimated to cause a loss of 20 million euros to the company.
But still Finnair is not begging for state subsidies.
-Companies in a weaker economic condition are making strong demands for help. A subsidy stampede would distort competition, because the risk of airlines using the system for wider support would be great. We are already seeing support that contravenes the EU's state-aid rules, says Mika Vehvilainen, Finnair CEO.
-We presume that the authorities will check immediately if the companies demanding support fulfill the conditions of their operating licenses. The cessation of operations for a week should not destabilize the solvency of a company that meets the EU requirements, says Mr Vehvilainen