Spain airline assns question Air Madrid LatAm routes going to LTU - report |
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Wed, 10 Jan 2007 09:44
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MADRID - Spanish airline associations are studying the legality of the Public Works Ministry making a deal with German charter flight company LTU to take over Air Madrid's LatAm routes, El Mundo reported, citing unnamed airline sector sources.The newspaper cited the sources as saying that the government is making an agreement with LTU 'behind the airlines' backs', noting they were never given the option of taking over Air Madrid's routes or slots.The sources said the government should have tallied up the routes and re-distributed them equally between all of the interested parties.Separately, El Mundo said Air Madrid chairman Jose Luis Carrillo defended the airline in court yesterday, stating that the voluntary suspension of activity was only provisional.He also said he invested an additional 7 mln eur in the company after the suspension, reflecting his intention of resuming operations.In 2006, the chairman invested some 30 mln eur in the airline.Air Madrid filed for bankruptcy in December after abruptly suspending operations shortly before the Spanish government was set to revoke the airline's licence because of safety breaches.afxmadrid@afxnews.comccs/jdy/jfrCOPYRIGHTCopyright AFX News Limited 2006. All rights reserved.The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.AFX News and AFX Financial News Logo are registered trademarks of AFX News Limited
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LTU says in talks over Air Madrid SAmerica routes, but acquisition not planned 