Finnair President and CEO Keijo Suila: Same rules for everyone in aid policy

The European Union Ministers of Finance and Transportation discussed aid and compensation proposals for the struggling airlines in their meetings on October 16, 2001. The Ministers requested that the EU Commission draw up guidelines for the Member States for granting limited compensation to airlines.

"We have previously announced that we oppose state subsidies to airlines or specific routes, as this would distort competition. However, if EU planned compensations are granted, we expect total impartiality and the same principles to be used in all the EU Member States," said Finnair President and CEO Keijo Suila.

The ministers' guidelines for granting compensations stated that compensations could be granted to cover losses directly incurred due to the shutdown of US airspace after the terrorist attacks, that for a limited period of time, governments could grant guarantees for damages to third parties inflicted by war or terrorism and that the governments would play a role in covering expenses incurred due to heightened security. The Commission also has stated that the governments should participate in the costs caused by heightened security.

"We are now waiting for the Commission's more detailed ruling before we define our own position. In the meanwhile, we will concentrate on realizing our own savings measures," Suila states.

The economic recession and the effects of the terrorist attacks in the United States have driven the entire aviation industry into serious difficulties. The situation has also forced Finnair to adjust its production and implement savings measures. The company announced yesterday its aims to save a total of approximately 115 MEUR in operational expenses on an annual level.