Debonair may sue the southern Italian regional government of Calabria for damages following delays in a contract to operate services from Reggio Calabria and Lamezia to Rome, Turin, Florence and Bologna.
'We still believe the authorities will be true to their commitments but we'll be firm to make sure they do stick to them,' says Debonair chairman and chief executive Franco Mancassola.
The delays to start the US$146 million contract are linked to investigations into the alleged breaking of European Union regional state aid rules. Regional carrier Minerva Airlines has lodged a complaint with the Italian authorities, describing the deal as 'totally illegal'. Mario Rusconi, Minerva managing director, says the local government is subsidising routes without European Commission permission and offered the contract exclusively to Debonair. A Debonair executive would not elaborate further than insisting that the deal 'does not involve subsidies'.
The Calabrian regional government, which is said to have approached airlines privately on the tender, has opened a judicial inquiry, believing it unwittingly may have contravened European law.
Brussels is also investigating the case and if it is unhappy with procedures the tender will have to be advertised publicly. A Commission source says the inquiry aims to find out if aid has been granted and whether public interest rules have been abided by. Aid is often allowed in depressed and remote regions, but there are minimum requirements for service and jet size. The Commission must be happy that 'interested' parties have had a fair chance of bidding for the contract, he says.
Source: Airline Business
