Ryanair to suspend Strasbourg service

Wednesday, 27 Aug, 2003 0

Commentators speculate that carrier may have to cut other routes

Ryanair is to suspend its service to the French city of Strasbourg after European judges ruled the carrier was not allowed to receive a subsidy from the airport. Today’s newspapers report that the route will be stopped next month, with many speculating that the carrier will have to cut other routes because it receives similar subsidies from other destinations around its network.

The business model it has adopted over the years means that regional airports help the carrier with costs and offers low landing fees, in return for an increase in traffic. The legal case was started by Air France, which complained that Ryanair was being given an unfair advantage because of the way it did business with Strasbourg airport.

Ryanair’s chief executive Michael O’Leary is quoted in The Independent thus: “It is wrong that the anti-competitive court actions of Air France should result in Strasbourg and the Alsace region – even on a temporary basis – its only scheduled service to London. It is wrong that state aid rules can be misused by high-fare flag-carriers to limit competition, consumer choice and lower fares.”

Ryanair has vowed to appeal against the decision, and in the meantime plans to fly to Baden-Baden airport, just 25 miles from Strasbourg, over the border in Germany.



 



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