Non-European airlines which are backed by government subsidies may soon face sanctions, under plans set to be approved by EU ministers today.

According to the Financial Times, Transport Ministers meeting in Luxembourg are likely to approve the levying of duty on government-backed airlines which engage in ‘unfair’ pricing practices.

The law is designed to give more power to curb trade distorting practices.

“The airline industry in the Community is faced with a critical challenge: the need for it to compete with third-country airlines which benefit from generous subsidies, while the Community industry is subject to strict rules on government aid”, part of the draft text quoted by the FT states.

If passed it would give Brussels similar powers to those already enjoyed by Washington and other capitals.

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