Italy Property Investment News

EU move will open up air routes to Italy and Sardinia

The European Commission (EC) has announced that it will limit what is referred to as the “abuse” of public service obligation (PSO) routes in Italy and Sardinia. This news was welcomed by low-cost carriers such as easyJet, who claim that Italian airlines were able to dominate some routes from the country under the PSO system, and were also able to receive government aid through the scheme.

This opening up of air routes in and out of Italy and Sardinia is set to boost tourism. In addition, real estate investors who have purchased in the country will benefit from the increased choice of airlines which will service the country.

Arnaldo Munoz, easyJet regional manager for Southern Europe, said: "We are pleased with this decision and congratulate the EC for limiting this attempt to give state aid through the back door to a few airlines. This decision will bring the Italian consumer more choice, lower fares and better service. Tourism in Sardinia will also benefit, as more visitors will be able to reach the island throughout the year.”

In March 2006, easyJet’s plans to launch flights between Milan and Olbia in Sardinia were blocked, which prompted the company to complain to the EC over what it deemed to be anti-competitive behaviour. This complaint led to the EC investigation and the Italian government now has until August 1 to reply to the EC decision and to state how it intends to change the existing decree on routes.