News: Easyjet forced off another European route
Flights > News > # 736 (06/04/2006)
Budget airline Easyjet has lodged a formal appeal against the Italian Transport Ministry and the Italian Civil Aviation Authority (ENAC) over the right to operate the Milan-Olbia route. The appeal was filed with the regional administrative court in Rome.
Easyjet has already submitted a formal complaint against the Italian authorities to the European Commission for anti-competitive behaviour. The European authorities are already assessing the decree and have the power to overrule it, if it is found to be against the EU's Open Skies Agreement. The legal wrangle started after Easyjet announced plans to operate from Milan to Olbia in Sardinia, as part of its expanding number of routes at its new base at Milan Malpensa. In response to this, the Italian Civil Aviation Authority (ENAC) took the unprecedented step of asking the airline to stop selling seats on the route because they intended to grant it Public Service Obligation (PSO) status.
Under European law, any European Union-based airline can offer scheduled flights between any two airports within the EU and only under very specific circumstances can a PSO status be imposed on routes where there is no viable commercial operation and a government considers it a "lifeline service". Easyjet contend this is not the case with this particular route – they have already sold 10,000 tickets. Easyjet’s Southern Europe chief, Arnaldo Munoz, said:
"It is absurd to impose PSO status on a route that a commercial airline has already announced it wants to operate - it goes against every single PSO principle and is a clear breach of European law.”
Mr Munoz added: “Unfortunately the narrow-minded protectionism of a few people has forced us to take legal action. PSO routes have no place in a free market and such back-door protection should be consigned to the dustbin of history.”
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