Following the terrorist attacks of 11 September 2001, the Commission adopted a Communication on their repercussions on the air transport industry. In that communication, the Commission considered that, having regard to the exceptional nature of the events of 11 September, the State aid provisions could authorise, under certain conditions, compensation for costs caused by the closure of American airspace for four days (from 11 to 14 September 2001) and for the extra cost of insurance.In 2002, the Greek authorities sent the Commission the detailed calculations of the compensation in favour of Olympiaki Aeroporia Ypiresies. It related to revenue lost in respect of the carriage of passengers and goods, the costs of destruction of sensitive goods, the additional costs of security checks, the costs of recalling an Athens to New York flight on 11 September 2001 and of cancelling the return flight, the costs of the landing and stay at Halifax (from 11 to 15 September 2001) of a flight the original destination of which was Toronto, the costs of extra repatriation flights (‘ferry flights’) on 18, 20 and 26 September 2001 and, finally, the costs connected with the additional hours worked by staff and the costs of additional security. The amount of EUR 4 827 586.21 was paid to Olympiaki in July 2002.In 2006, at the conclusion of a formal investigation procedure, the Commission decided that the State aid was compatible with the common market as regards the compensation paid for the period from 11 to 14 September 2000 up to a maximum amount of EUR 1 962 680. On the other hand, the Commission considered that the cancellation of the flights of 15 and 16 September 2001 and the ‘ferry flights’ were but indirect repercussions of the terrorist attacks. It also ordered the recovery of any amount of aid paid in excess of EUR 1 962 680.On the other hand, the Commission considered that the cancellation of the flights of 15 and 16 September 2001 and the ‘ferry flights’ were but indirect repercussions of the terrorist attacks. It also ordered the recovery of any amount of aid paid in excess of EUR 1 962 680.Olympiaki applied to the Court of First Instance for the annulment of the Commission’s decision in so far as it fixed the maximum amount of compensation compatible with the common market at EUR 1 962 680. It challenged the determination that no loss which arose after 14 September 2001 had a causal connection with the terrorist attacks of 11 September.The Court of First Instance notes that the existence of a direct connection between the exceptional occurrence and the damage caused does not presuppose that they occurred at the same time.The Court of First Instance annuls the Commission’s decision in so far as it concerns the compensation for the cancellation, on 15 September 2001, of the flight to Toronto, on the ground that the evidence on which the Community institution relied in order to substantiate the lack of a causal connection did not justify its determination. Further, the Court of First Instance annuls for failure to state reasons, the Commission’s decision in so far as it concerns the losses suffered by Olympiaki, first, on its network apart from the North Atlantic and Israel (about EUR 1 212 000) and, second, lost revenue amounting to about EUR 500 000 in respect of the carriage of goods and other costs incurred.Source: European Court of First Instance press release>>.
