Letter: Shareholding is not state aid

Sir: In the 13 September issue of the Independent, Michael Harrison wrote: 'In the past three years dollars 3bn in state aid has gone to Air France, Iberia of Spain and Sabena of Belgium.' In a subsequent issue (21 September) one of your articles, entitled 'Brussels brought down to earth over airlines', stated that: 'In recent years three state-owned airlines, Sabena, Iberia of Spain and Air France, have been allowed to soak up dollars 3bn in subsidies . . .'

As far as Air France is concerned, this is not true. Air France has not received any state aid in the past years. In 1991, we launched a FF2bn rights issue, subscribed to by the French state, our main shareholder, as any private shareholder would have done to help finance major investments.

The European Commission screened this rights issue and publicly concluded, in July 1992, that this was not state aid.

Yours sincerely,

FRANCOIS ELDIN

Corporate Communications

Air France

Paris

6 October