BA demands that Air France aid be repaid
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.BRITISH AIRWAYS yesterday stepped up the attack on state aid to ailing European airlines by urging Brussels to force Air France to repay Fr1.5bn ( pounds 176m) in aid on the grounds that the payment was illegal.
In a submission to the European Commission's transport directorate, BA claimed that the payment by the French government contravened competition law since it was not used to restructure the airline and could not be described as a normal commercial investment.
Air France received approval for a total of Fr5.84bn in state aid in 1991 and 1992 and the French government is set to seek approval for a further tranche in excess of Fr5bn.
Commenting on the Fr1.5bn aid package, David Holmes, head of government and industry affairs for BA, said: 'This money was not a commercial investment. It was state aid, which contravenes the Treaty of Rome. It should be given back. Air France's financial salvation should lie in its own hands - not through state hand-outs that are unfairly and illegally distorting Europe's air transport industry.'
BA's claims are based on a study of the recapitalisation of Air France carried out by legal advisers and an independent corporate finance and investment bank. The money was channelled through the state-owned CDC-Participations.
Air France has consistently maintained that the aid did not amount to a subsidy and was approved by the European Commission under its state aids regime.
Subscribe to Independent Premium to bookmark this article
Want to bookmark your favourite articles and stories to read or reference later? Start your Independent Premium subscription today.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments