| Submit your comments on this article |
| Europe |
| Italy orders EU airlines to curb low fare deals |
| 2004-08-08 |
| Popcorn and lawn chairs, everyone. It's time to watch the Perseid meteor shower and EUrocrats at play. Italy has ordered leading European airlines, including British Airways and Germany's Lufthansa, to stop offering lower fares than Alitalia, the struggling majority state-owned Italian flag carrier, on competing long-haul services. The move by the Italian government comes as it seeks to prevent Alitalia collapsing into bankruptcy by agreeing an emergency state-guaranteed €400m ($493m) loan to the airline. But it has sparked a fierce protest by BA to the European Commission and has triggered a row with the UK government. Lufthansa said it was in talks with Italian authorities after it had been told to raise its fares to Alitalia's levels. BA told the Commission last week that Enac had threatened to take legal action unless the airline "withdraws its fares henceforth". In a letter received on July 29, BA had been given three days to comply or face immediate consequences. I thought only Islamic holy men could issue fatwas against airlines? |
| Posted by:Seafarious |