it was bound to happen sooner or later. A succession of unprofitable national flag-carriers have been itching for an opportunity to seek a bail-out from their governments. The attacks in the US last month may have given them their chance. These death-bed repentances must be resisted.

A number of governments have already wilted under the pressure; more may do so in the coming weeks, and attention is now focused on the European Commission. Will it hold firm in its commitment to greater competition, or give its blessing to a retreat back to protectionism and state aid? Encouragingly, the Commission's proposals on the airline industry, published last Wednesday, suggest a more resolute and robust rebuttal of state aid.

In essence, the Commission has given its backing to a short-term package of support focused on a small number of measures. It has sought to isolate and ring-fence the issues that have arisen directly from the US terrorist attacks and has focused on these alone, without lurching towards longer-term, more general state aid. For example, it recognises that there is a need for temporary assistance with insurance and security measures. It recognises also that there is a case for compensation only for the four days following the attacks, when US air space was closed.

The Commission's proposals may not be enough to stop some airlines going bankrupt. If this happens, it will be because those firms are unable to cope with the rigours of commercial life: it will not be owing to acts of terrorism.

A way ahead is now available to the European Commission and national governments that will offer benefits to the consumer and help to develop a competitive European airline industry. If governments are to be allowed to provide short-term assistance to airlines, as the Commission indicates, this must be accompanied by the relaxation of restrictive trade practices that still bedevil the industry, preventing fair competition and depriving the consumer of lower fares and greater choice.

Under the Bermuda II treaty, only four airlines are permitted to fly between London Heathrow and the US. British Airways, a member of the Bermuda II "club", has made large profits on its transatlantic services that are used to subsidise loss-making services and investments in Europe. The response to this inequity is not to give state aid to airlines that compete against British Airways in Europe. Instead, the answer is to open up the transatlantic routes to free and fair competition.

In addition to greater competition on routes, restrictions on foreign ownership of airlines need to be removed as they are preventing the necessary process of consolidation and hindering the introduction of greater efficiencies. Airlines should be allowed to behave like other international businesses, raising finance on a global basis and competing openly in free markets for their customers.

The truth is that there are too many airlines chasing too few passengers, despite the growth in demand for air travel. It is time that scheduled airlines and governments took a deep breath and plunged into the pool of liberalisation and competition. Some of the airlines will succeed; some will fail and, frankly, must be allowed to do so. If airlines want support throughout the current difficulties, that support must be proportionate and focused exclusively on the direct implications of the events of September 11th. The Commission seems to have got this about right.

What the Commission must now do is insist that the industry moves towards greater competition in return. It will be difficult. Too many governments view national flag-carriers as status symbols to be treasured and paraded before the world, while at the same time avoiding awkward confrontation with entrenched interests. Too many airlines exploit this misplaced sentiment and seek to perpetuate a relationship with government that may make life easy for themselves but offers little benefit to the consumer.

It is time to move on, carefully but decisively. Governments are not nannies; airlines are not children. The airline industry must grow up and compete for customers on the basis of free and fair competition. This will bring choice and lower fares to the consumer and help to develop a European civil aviation industry that is strong, competitive and sustainable.

Sir Michael Bishop is the chairman of BMI British Midland