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Ryanair Threatens To Leave Belgium Over Illegal State Aid Claims
by Ulrika Lomas, for LawAndTax-News.com, Brussels

14 November 2003

In a statement released on Wednesday, low cost airline, Ryanair revealed that if the European Commission rules against it in a dispute over subsidies granted by Belgian local government, it may be forced to stop flying to Charleroi airport, and to many of its other regional European destinations.

The firm has benefited from subsidies worth an estimated £5 million per year on landing and handling charges, and marketing costs, offered by the Walloon regional authorities.

Although this relationship appears to have been mutually beneficial, with the number of passengers travelling to the airport rising to nearly two million (an eight-fold increase) since Ryanair's arrival, a complaint from rival airport, the state-owned Brussels Zaventum, sparked an EC investigation into whether the subsidies constitute illegal state aid under EU law.

At a press conference, and in a later statement on the issue, the Dublin-based airline confirmed that it had "learned that a draft report from the Commission indicates that substantial parts of Ryanair's arrangements at Brussels Charleroi will be found unlawful", although it admitted that it had not actually seen the draft report in question.

Should this turn out to be the case, Ryanair revealed that it will launch an appeal to the European Court of Justice in Luxembourg to have the decision overturned, and enter into negotiations with the Walloon government and the airport authorities with regard to the possibility of Brussels Charleroi being privatised.

However, the airline went on to explain that:

"If neither of these options are possible and if a negative decision is issued by the Commission, then Ryanair will be forced, temporarily, to close the base at Brussels Charleroi, while the appeal is pending, transfer the aircraft and the routes to another privately owned European capital city airport, and then return when this negative decision can be overturned on appeal."

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