European Transport Commissioner Adina Vălean says the outbreak of the coronavirus is the wrong time to attach new environmental conditions to state aid for airlines. Environmental groups want any state aid to airlines to be conditional on further reducing their CO2 emissions and on paying kerosene taxes.
The international transport sector has been severely disrupted as governments have imposed various travel restrictions. As a result, airlines, rail companies, and ferry connections have had to scale back or completely cancel their services. Freight traffic also risks gridlock and disruption of crucial transport chains because extra border checks have caused huge queues.
It is now clear that the corona crisis will not be limited to a short-lived global medical pandemic, but also threatens to develop into an economic crisis possibly greater than the crisis of the 1930s. The European Parliament in Brussels is currently discussing a corona recovery package.
Promotion
It is already clear that this will cost not tens or hundreds of billions, but many hundreds of billions. Therefore, under the leadership of the new chair Ursula von der Leyen, the European Commission has decided that the 27 EU Commissioners must review their policy programs from last year.
According to a first rough version of the new TRAN work program – reviewed by the news site EURACTIV – several legislative proposals to increase the use of sustainable fuels in the aviation and maritime sectors will at least be postponed until 2021. But the centerpiece of Transport Commissioner Vălean’s portfolio, a comprehensive strategy for sustainable mobility, remains on the agenda and is expected to be published by the end of 2020.
Because passenger numbers and revenue in aviation have dropped by up to 92% in some places, parts of the industry face extinction as many smaller players face bankruptcy. Airlines were disappointed that the European Commission insists they must refund passengers instead of offering vouchers for flights at a later date.
EU legislation on passenger rights states that airlines may propose vouchers instead of refunds, but it is up to the customer to accept them or not. Some travel and airline companies do not comply with these rules. However, Vălean is uncompromising in her stance that the rules “clearly state that passengers are entitled to compensation” and that protecting customers’ legal rights is worth defending.
The commissioner has admitted that airlines are free to make vouchers as attractive as possible for travelers. The Netherlands has approved vouchers with a time limit which, if not used within a certain period, must be fully refunded. Airlines prefer to offer vouchers because refunds deplete their cash reserves at a time when they need them most.