The only significant hurdle that appears to stand between Swissair taking a 49 per cent stake in Sabena is the European Commission.
Ironically, it has not been Swissair's bid to gain access to the internal European market through the backdoor that has cast the Commission in the role of doorman, rather a miscalculation by the Belgian government has caused the transport directorate to flex its muscles.
The opt-out granted to Sabena on part of its social cost obligations, valued at BFr650 million ($22.2 million) annually, has both come under Commission scrutiny as potential state aid and led to complaints from competitors, including groundhandler Belgavia, Belgian independent EBA and British Midland.
At presstime, however, the Belgian government still had not met the Commission's request for an official notification of the opt-out. A senior Commission insider confirms unofficial talks have been held with the Belgian authorities, who are trying to avoid a Commission investigation which could last two months.
Another official denies that Belgian government pressure will persuade the transport directorate to sweep the issue under the carpet: 'The Commission has enough self-confidence to withstand . . . political pressure from one member state.' He adds that 'given the sensitivity surrounding state aids to air carriers' an investigation appears inevitable. Swissair has said that a lowering of Sabena's social costs is critical to any participation. With Air France agreeing in principle to sell its holding in Sabena, everything hinges on the Belgian government and the Commission.
Source: Airline Business
