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2012-12-12

Government support for Brussels Airlines

Belgium's socialist-led government has decided to release 20 million euros in support for the country's troubled aviation sector. Belgian flag carrier Brussels Airlines, a subsidiary of German's Lufthansa, has been in financial straits for a while. Operators Jetairfly and Thomas Cook Airlines will also be able to benefit from the government aid package.
Mobility Secretary Melchior Wathelet (Francophone Christian democrat) had drawn up a plan that would envisage 30 million euros worth of support for the Belgian aviation sector. The aid would partly be given in the form of tax cuts for airline companies.
Belgium's Inner Cabinet decided that only 20 million could be afforded. The aid package includes help with staff training.
The government says it's acknowledging that Belgian companies experience unfair competition from carriers like Ryanair that are based overseas in countries where airline operators enjoy a more beneficial tax regime.
Economy Minister Johan Vande Lanotte (Flemish socialist): "We're giving support ahead of European measures. The EU says that a level playing field should be created in aviation within a decade. In anticipation of this I think it's a good idea to provide Belgian support."

Regards,
Daniel Brackx