Court threat over Sabena travel perks

Date: 30/01/1997

THE Belgian government has been threatened with court action by the European Commission unless it complies with a demand to stop giving preferential treatment to Sabena at Brussels airport.

Belgium has been given until 12 February to convince the Commission that it has stopped stalling, or face legal proceedings in the European Court of Justice.

The move comes nearly two years after the Commission demanded that Brussels-National airport put an end to a system of rebates on aircraft landing charges which gave the Belgian national flag-carrier a big advantage over rivals.

Commission competition officials maintain that the charging system, which has been in force since December 1989, amounts to an abuse of the airport's dominant position and exclusive rights.

British Midland, which lodged the complaint, said Sabena enjoyed an 18&percent; discount on charges. The two carriers are head to head competitors on the Brussels-London route, with the British Midland offering 14 services daily.

The UK carrier is hoping for compensation from the Belgian government once it agrees to fall in line with the Commission decision. “We are very angry about this delay. Either we should be refunded or Sabena should have to pay the extra costs. We are talking about quite a considerable sum,” said a spokesman.

Preferential charges for heavy users of airports are a regular feature of the aviation industry. British Midland itself receives discounts as one of the biggest users of London Heathrow.

But it claims that the Brussels regime goes far further than usual and cannot be justified by any economies of scale that the airport could claim as a result of the discounts.

Belgian officials say the government intends to present a new charging system before the 12 February deadline.