L 63/66 Official Journal of the European Communities 12.3.1999 COMMISSION DECISION of 22 July 1998 concerning the notified capital increase of Air France (notified under document number C(1998) 2404) (Only the French text is authentic) (Text with EEA relevance) (1999/197/EC) THE COMMISSION OF THE EUROPEAN COMMUNITIES, does not form part of normal commercial relationships shall be made between the companies in the group, either before or after the actual setting up of the holding company. Accordingly, all transfers of goods and services between the companies shall be carried out at market prices; in no case may Air France apply preferential tariffs in favour of Air Inter; Having regard to the Treaty establishing the European Community, and in particular the first subparagraph of Atrticle 93(2) thereof, Having regard to the Agreement establishing the Euro- pean Economic Area, and in particular point (a) of Article 62(1) thereof and Protocol 27 thereto, Having, in accordance with Article 93 of the Treaty, given notice to the parties concerned to submit their comments by opening the procedure on 25 May 1994, and having regard to those comments, (2) the process of privatising Air France shall begin once the company’s economic and financial recovery has been achieved, in accordance with the plan, having regard Whereas: also to the situation on the financial markets; I. THE PACTS (3) Air France shall continue the process of (1) By Decision 94/653/EC (') (hereinafter referred to implementing in full the plan as commun- icated to the Commission on 18 March 1994, in particular as regards the following productivity targets expressed by the in- dicator equivalent revenue passenger kilo- metre/employee for the duration of the restructuring plan: as ‘the 1994 Decision’), the Commission authorised the French authorities to grant to the Compagnie Nationale Air France (hereinafter referred to as ‘Air France’) State aid amounting to FRF 20 billion. The first two Articles of the enacting part of the Decision read as follows: ‘Article 1 — 1994: 1556 200 equivalent revenue passenger kilometre/employee, The aid to be granted in the period 1994 to —1995: 1725000 equivalent revenue 1996 in favour of Air France, in the form of a kil 1 FRF 20 billion capital increase to be paid in passenger kilometre/employee, three tranches, and aimed at its restructuring in — 1996: 1829200 equivalent revenue accordance with the plan is compatible with passenger kilometre/employee; the common market and the EEA Agreement by virtue of Article 92(3)(c) of the Treaty and (4) they shall adopt the normal behaviour of a Article 61(3)(c) of the Agreement, provided that shareholder vis-a-vis Air France, allowing the French Government comply with the the company to be managed in accordance with commercial principles alone and following commitments: ¢ ) . " ] abstaining from intervention in its (1) the entire amount of aid shall benefit Air management for reasons other than those France alone. Air France means the connected with its status as a shareholder; Compagnie Nationale Air France, as well as any company of whose capital it holds (5) they will not grant to Air France, in more than 50 %, with the exception of Air accordance with Community law, any new Inter. In order to prevent any transfer of appropriation or any other form of aid; aid to Air Inter, a holding company will be set up by 31 December 1994 which will (6) they will ensure that, for the duration of have a majority shareholding in Air France the plan, the aid is used exclusively by Air and Air Inter. No financial transfer which France for the purposes of restructuring the company and not to acquire new hold- (') OJ L 254, 30. 9. 1994, p. 73. ings in other air carriers;