EUROPE has perhaps shown a little more even-handedness to the airline industry last week in Brussels, adopting a second reading of a proposal to impose duties on non-European air carriers which compete unfairly with Community airlines. Following the events of 11 September 2001, the US administration and other governments granted their airlines huge subsidies, distorting in particular the transatlantic market and, it claimed, hitting the interests of European airlines. As a result of this week's vote in the European Parliament, an EU airline will be able to complain to the Commission if it believes it has been the victim of unfair competition. The Commission would then be able, following an investigation, to impose duties on the non-EU airline concerned. An agreement has been reached with the Council of Ministers which will enable the new rules to enter into force without further parliamentary approval. How much teeth this action has remains to be seen and clearly a counter charge of underlining assistance could be mounted.
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