Airline Trade War

Loyola de Palacio, the EU Transport Commissioner, has put forward proposals to the Commission to hit state-aided airlines flying into the EU with penalties, including duties and landing right restrictions. Although it is stressed that this is not aimed at a particular country, it is viewed by some observers as retaliation against the USA, which provided $15bn in aid to carriers following September 11th. There have been complaints by EU airlines that this has been used as a means of unfair competition.

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