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Scottish Executive cash handout for airlines & airports branded ÒunacceptableÓ - ÒUnfair state aidÓ complaint to Brussels by environment groups In November last, First Minister Jack McConnell, announced a 3-year £6 million subsidy to BAA plcÕs Scottish Airports Ltd. and Highlands & Islands Airports Ltd. (HIAL) to cut airport charges, in a bid to attract more airlines. The First Minister also promised more money in 2004. But even ScotlandÕs largest airport operator questioned whether this handout would work. At the time of the announcement, BAAÕs Scottish Airport Business Development Director, David Field, warned that businessman must be prepared to "use it or lose it" if these new heavily-subsidised routes were to be successful. Environment groups view these subsidies as unacceptable. Millions of £'s in state aid, chasing passengers just for the sake of it, encourages the development of completely unprofitable routes with damaging environmental impacts. Jeff Gazzard, "AirportWatch" National Director, said: "State aid to airports that make lots of money seems bonkers to us! We know that BAAÕs Scottish airports already have a multi-million £ development budget of their own - why does the Scottish Executive want to give them money to encourage polluting planes to fly under-used and unprofitable routes? Jeff Gazzard added: "State subsidies to the aviation industry should be a thing of the past Ð airlines pay no tax on their fuel and no VAT as it is. We are writing today to Mrs Loyola Palacio, the Brussels-based European Transport Commissioner, asking the Transport Directorate to investigate this, in our view, potentially illegal state aid. The EC is already looking at similar complaints about handouts to airlines from European regional Government. We want these Scottish subsidies withdrawn." Colin Howden, Campaign Manager for TRANSform Scotland, said: "David FieldÕs comment when these subsidies were
announced gives the game away. BAAÕs Scottish Airports are unwilling to
take the risk of unprofitable routes and seem ready to blame passengers
for daring not to use them, whilst holding a multi-million pound begging
bowl out to the Scottish Executive at the same time. This is another example
of the crazy world of airline economics. WeÕve all heard of "pay
as you go" and "pay as you earn" Ð this a new twist "pay
us to fly."" END OF NEWS RELEASE |