Ryanair would lose money without state aid, claim rivals

Ryanair's rival carriers have drawn up a report alleging that the no-frills airline would have made a loss of €304.9m last year if its wasn't for state support, according to a news report in the Belgian newspaper L'Echo.


The report, which hasn't been made public, was drawn up by the Association of European Airlines.


In an interview with the newspaper, Ryanair boss Michael O'Leary denied the airline received state aid and claimed that tax reductions it negotiates with airports don't count as public support.


Meanwhile, the Irish government is considering the latest bid by Ryanair for Aer Lingus and says it has not ruled out selling its own 25% stake in the carrier.


Ryanair already owns just under 30% of Aer Lingus and last week made a bid for remaining shares to boost its holding to at least 50% (see earlier story).


The Irish government said it was considering the offer depending on what impact it would have on services, air fares and whether competition authorities will allow the takeover.


 


By Linsey McNeill

Wednesday, June 27, 2012

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