The EC not aware of peripheral islands’ special problems

Former Prime Minister Alfred Sant said that within the European Commission there still does not exist sufficient awareness of how peripheral islands and regions are affected by the very fact of their isolation or small size, and that a policy that is based on the principles of unrestricted free trade denies their need for special treatment to remedy their isolation. At present, Dr.Sant said, the same question is arising in the area of European rail transport, where similar problems exist. Dr. Sant said that the operations of small airlines like AIRMALTA and Cyprus Airways do not affect the competitive situation in the EU. The fact that Cyprus Airways only carried 12% of air traffic towards Cyprus is such a small volume that it certainly could not have affected the competitive situation in the EU. Dr. Sant said that it was not sensible to let Cyprus Airways die and give the flight concessions it held to other companies which have wider interests than those of Cyprus. ‘Similar arguments apply, in my view, to Air Malta.’ said Dr. Sant. The Maltese Head of Delegation of the S&D at the European Parliament gave his comments after the European Commission told him in a written reply that even without Cyprus Airways, Cyprus should remain connected to many international hubs.

Dr. Sant had asked the EC whether it should consider adopting more flexible methods when evaluating state aid and support to air and sea transport links comparable to those of Cyprus Airlines in the interests of ensuring that ongoing economic activity in peripheral island markets is maintained or even enhanced.

Replying to Dr. Sant’s question, Margrethe Vestage EU Competition Commissioner said the Commission concluded its three formal investigations concerning the State aid provided to Cyprus Airways by issuing a final decision on 9 January 2015. The Commission said it found that the aid provided to Cyprus Airways gave the company an undue advantage over its competitors in breach of EU State aid rules for rescue and restructuring aid. Cyprus Airways therefore needs to pay back all incompatible aid received.

The EC said rescue and restructuring aid is particularly distortive and requires close scrutiny and strict conditionality. It is thus not appropriate for ensuring transport links to and from peripheral islands. Member States wishing to ensure operation of air transport routes considered vital for economic and social development may use the possibility to establish public service obligations meeting the requirements of the EU’s air services regulation.

As regards the consequences of the negative decision for Cyprus’ connectivity, the Commission said Cyprus Airways’ share of air traffic to/from Cyprus has been relatively limited in recent years (around 12% in 2014). Several other airline companies operate to/from Cyprus. Therefore, even without Cyprus Airways, Cyprus should remain connected to many international hubs. Finally, several operators have already publicly announced their intention to increase their activities in Cyprus, the EC said.

‘IL-KUMMISSJONI EWROPEA MHIX KONXJA TAL-PROBLEMI FI GŻEJJER PERIFERALI’

Il-Kap tad-Delegazzjoni Maltija fl-S&D fil-Parlament Ewropew qal li fi ħdan il-Kummissjoni Ewropea għad ma hemmx biżżejjed għarfien ta’ kif gżejjer u reġjuni periferiċi jiġu affettwati bil-fatt tal-iżolament jew iċ-ċokon tagħhom. Politika bbażata biss fuq il-prinċipji tal-kummerċ ħieles tinnega l-ħtieġa ta’ trattament speċjali biex tikkumbatti l-iżolament tagħhom. Bħalissa l-istess kwistjoni qed tqum fil-qasam tat-trasport bil-ferroviji, fejn jeżistu l-istess problemi. Dr. Sant qal li l-operazzjonijiet ta’ kumpaniji żgħar bħal AIRMALTA u Cyprus Airways ma jaffettwawx l-qagħda kompetittiva ġenerali fl-Unjoni Ewropea. Il-fatt li Cyprus Airways ġarret biss 12% tat-traffiku tal-ajru lejn u minn Ċipru, huwa tant volum żgħir li ċertament ma setax jaffetwa s-sitwazzjoni kompetittiva fl-UE. Dr. Sant qal li ma jagħmilx sens li Cyprus Airways tinqatel u li l-linji li kienet isservi jingħataw lil ħaddieħor li għandu interessi aktar mifruxa minn ta’ Ċipru. ‘L-istess argumenti japplikaw, fil-fehma tiegħi, għall-Air Malta.’ Sostna l-ex Prim Ministru.

Dr. Sant kien qed jagħti r-reazzjonijiet tiegħu wara li l-Kummissjoni Ewropea qaltlu, fi tweġiba bil-miktub, li anke mingħajr Cyprus Airways, Ċipru kellu jibqa’ magħqud ma’ ħafna ċentri internazzjonali. Dr. Sant kien staqsa lill-Kummissjoni Ewropea għandhiex tikkunsidra li tadotta metodi aktar flessibbli meta tevalwa l-għajnuna u l-appoġġ mill-Istat għal konnessjonijiet bl-ajru u bil-baħar paragunabbli għal dawk ta’ Cyprus Airlines. Dan fl-interess li jkun żgurat li l-attività ekonomika li tkun għaddejja fi swieq ta’ gżejjer periferiċi tinżamm jew saħansitra tittejjeb.

Fit-tweġiba tal-Kummissjoni, Margrethe Vestage Kummissarju għall-kompetizzjoni, qalet li għalqet it-tliet investigazzjonijiet formali tagħha dwar l-għajnuna mill-Istat mogħtija lil Cyprus Airways billi ħarġet deċiżjoni finali fid-9 ta’ Jannar 2015. Il-Kummissjoni qalet li sabet li l-għajnuna mogħtija lil Cyprus Airways tat lill-kumpanija vantaġġ mhux dovut fuq il-kompetituri tagħha bi ksur tar-regoli tal-UE dwar l-għajnuna mill-Istat għall-għajnuna ta’ salvataġġ u ta’ ristrutturar. Cyprus Airways għalhekk jeħtiġilha tħallas lura l-għajnuna inkumpatibbli kollha li rċeviet.

Il-KE qalet li l-għajnuna ta’ salvataġġ u għar-ristrutturar hija partikolarment distortiva u teħtieġ skrutinju mill-qrib u kundizzjonalità stretta. Għalhekk mhijiex xierqa biex tiżgura konnessjonijiet tat-trasport lejn u minn gżejjer periferiċi. L-Istati Membri li jixtiequ jiżguraw l-operat ta’ rotot ta’ trasport bl-ajru meqjusa vitali għall-iżvilupp ekonomiku u soċjali jistgħu jużaw il-possibbiltà li jistabbilixxu obbligi ta’ servizz pubbliku li jissodisfaw ir-rekwiżiti tar-regolament tal-UE dwar is-servizzi tal-ajru.

Dwar il-konsegwenzi tad-deċiżjoni negattiva għall-konnettivita` ta’ Ċipru, il-KE qalet li is-sehem mit-traffiku tal-ajru lejn u minn Ċipru ta’ Cyprus Airways kien relattivament limitat f’dawn l-aħħar snin (madwar 12 % fl-2014). Bosta kumpaniji tal-ajru oħra joperaw lejn u minn Ċipru. Għalhekk, anki mingħajr Cyprus Airways, Ċipru għandu jibqa’ konness ma’ ħafna ċentri internazzjonali. Fl-aħħar nett, qalet il-KE, diversi operaturi diġà ħabbru pubblikament l-intenzjoni tagħhom li jżidu l-attivitajiet tagħhom f’Ċipru.