Ryanair ruling published

Tuesday, 03 Feb, 2004 0

Ryanair has reportedly been told it must pay back around GBP3 million to the Belgian government; money it received in subsidies that have now been declared illegal. The BBC website reports that the European Commission found that discounts on landing fees, as well as other subsidies, were illegal – but that the fine would be “reasonable” and that the carrier could continue to use the airport. While the exact amount of the fine is due to be revealed tomorrow, the BBC, along with other media outlets, is quoting EU “sources” who say the amount will be around GBP3 million, roughly half the worst-case estimates for the carrier. The EU transport commissioner Loyola de Palacio reportedly said: “This decision means that we are going to declare as incompatible a large part of the elements of the arrangement between Ryanair and Charleroi.” She added: “This legal decision is well-balanced – it brings greater transparency into contractual relations between airlines and airports, especially regional airports. It will also help the development of low-cost operations. “All players in the same arena must be able to play by the same ground rules. All airlines must be aware of the possibilities offered, and only genuine competition is truly capable of safeguarding consumers’ rights.” As reported by News From Abroad, Ryanair had previously warned that it will consider suing any European airline and/or airport invoived in a similar arrangement. The Belgian Walloon region has also said it is considering appealing against any negative ruling.



 



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