News: Easyjet's Italian job halted
Flights > News > # 777 (12/05/2006)
Easyjet's plans to operated flights from Milan to the Sardinian city of Olbia have been thwarted by the Italian courts.
The route has been designated a Public Service Obligation (PSO), which means that the Italian government is allowed to subsidise the route under European rules. PSO’s are supposed to be used as a last resort on “lifeline” routes, usually isolated outposts which need regular flights, but where there is not enough demand for them to be competitive. Easyjet argue there is sufficient demand on the Olbia-Milan route for it to be opened up for competition, but the regional administrative court of Lazio have ruled against the no-frills giant.
Easyjet’s southern Europe chief, Arnaldo Munoz, said: “We find it astonishing that the court blocks flights by Easyjet and Ryanair to Sardinia, while (Italian national airline) Alitalia is invited to fly.”
The European Commission are investigating the matter, and Mr Munoz said Easyjet expect a positive outcome, adding: “We are confident that the Commission will soon end this abuse of these subsidised monopolies in Italy.”
Easyjet had planned to start the service on April 21, but it has been suspended for the foreseeable future.
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