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PR(02)08: The EFTA Surveillance Authority clears aid for temporary operation of air transport services on the route between Reykjavik and Höfn (Iceland)


By today’s decision, the EFTA Surveillance Authority has decided not to raise objections to a proposed aid to Air Iceland (“Flugfélag Íslands”). The aid, amounting to ISK 31.5 million (approx. € 380 000), will be granted as compensation for the operation of air services between Reykjavik and Höfn (Iceland) from 1 October 2001 until 30 September 2002.

Following the announcement of Air Iceland to cancel its scheduled air services between Reykjavik and Höfn v.v. as from 1 October 2001, considering that air transport services on that route were no longer commercially viable, the Icelandic authorities concluded a contract with Air Iceland regarding the operation of air services on that route. The duration of this contract is limited in time until a new air carrier will be selected under the formal tender procedure as provided for in the EEA Agreement (Council Regulation (EEC) No. 2408/92 of 23 July 1992 on access for Community carriers to intra-Community routes, incorporated into Annex XIII to the EEA Agreement). The ‘interim contract’ to be awarded to Air Iceland will have a limited duration of 12 months, starting 1 October 2001 and continuing to 30 September 2002.

For further information, please contact Mr. Utne (tel. (02) 286.18.50).

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