European carriers meet with EU transport commissioner.

AIRLINE INDUSTRY INFORMATION-(C)1997-2001 M2 COMMUNICATIONS LTD

The Association of European Airlines (AEA) met with European Union Transport Commissioner Loyola de Palacio on 20 September to discuss the possibility of aid for the EU's airlines in the wake of last week's terrorist

AEA representatives have asked the EU to consider a relaxation of restrictions governing subsidies to allow for compensation packages, and exemptions from antitrust rules so that airlines can work more closely together. EU officials have stated that they will consider the proposals, but have indicated that the EU does not have the budget to provide any cash injections itself, according to The Associated Press. The EU has also stated that any solutions adopted would be temporary and limited to cover immediate losses resulting from the terrorist attacks. Palacio has agreed to establish a working group with the airlines to look at possible solutions.

European airlines have estimated that they lost about USD30m per day during a ground-stop in the USA that meant they could not operate normal transatlantic services.

Meanwhile, in the USA, President George W Bush has asked Congress to approve a plan to give the nation's carriers USD5bn in immediate support.

US carriers have requested billions of dollars more in aid, but Bush has apparently delayed consideration of this request.

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