EU to allow state aid to help airlines

THE European Commission has given airlines the green light to seek state aid to help meet the cost of the estimated €2.5 billion compensation bill incurred during the recent volcanic ash cloud crisis.

However, Transport Minister Noel Dempsey last night poured cold water on any suggestion his Government will be providing compensation.

Mr Dempsey said Ireland did not have the money in the current economic climate and the recommendation by the EU was just that – a recommendation.