newstodate.aero
Jun 20, 2013 (newstodate): State aid to the Scandinavian carrier SAS has come into the spotlight of the EU Commission.
The Commission has opened an in-depth investigation to verify whether a public support measure granted in 2012 by Sweden and Denmark to SAS is in line with EU state aid rules.
The Commission has also examined other measures in favour of SAS in 2009, 2010 and 2012 and has come to the conclusion that these were carried out on market terms and therefore do not involve state aid.
The Commission doubts that the latet revolving credit facility in 2012 was carried out on market conditions, as the public shareholders on the one hand and the banks and the Wallenberg Foundation on the other hand were not in a comparable situation.
In particular, while the public shareholders increased their exposure to SAS through the participation in the new RCF, the banks significantly reduced theirs given that they roughly halved their contribution to the new RCF when compared to the previous RCF.
Furthermore, the Commission has concerns regarding the reliability of the business plan, on the basis of which the public shareholders decided to participate in the new RCF.
It has therefore opened an inquiry into the participation of Sweden and Denmark in this measure. The opening of an in-depth investigation gives interested third parties an opportunity to comment on the measures under assessment.
Budget carriers including Ryanair and easyJet have been pressing hard for an investigation, claiming that SAS enjoyed favorable conditions and protection by the state owners to the detriment of fair competition in the market.
The Commission has opened an in-depth investigation to verify whether a public support measure granted in 2012 by Sweden and Denmark to SAS is in line with EU state aid rules.
The Commission has also examined other measures in favour of SAS in 2009, 2010 and 2012 and has come to the conclusion that these were carried out on market terms and therefore do not involve state aid.
The Commission doubts that the latet revolving credit facility in 2012 was carried out on market conditions, as the public shareholders on the one hand and the banks and the Wallenberg Foundation on the other hand were not in a comparable situation.
In particular, while the public shareholders increased their exposure to SAS through the participation in the new RCF, the banks significantly reduced theirs given that they roughly halved their contribution to the new RCF when compared to the previous RCF.
Furthermore, the Commission has concerns regarding the reliability of the business plan, on the basis of which the public shareholders decided to participate in the new RCF.
It has therefore opened an inquiry into the participation of Sweden and Denmark in this measure. The opening of an in-depth investigation gives interested third parties an opportunity to comment on the measures under assessment.
Budget carriers including Ryanair and easyJet have been pressing hard for an investigation, claiming that SAS enjoyed favorable conditions and protection by the state owners to the detriment of fair competition in the market.