EC Judgement On Ryanair Illegal State Aid Allegations Not Expected Until January

by Ulrika Lomas, for LawAndTax-News.com, Brussels

05 December 2003

It has emerged this week that a judgement on whether the aid granted by Belgium's Charleroi airport to low-cost airline, Ryanair constitutes illegal state aid is not expected until January at the earliest.

Speaking on Wednesday, spokesman for EU Transport Commissioner Loyola de Palacio, Gilles Gantelet announced that:

"We will try to reach a decision in the coming weeks, but there is no precise date". He added that it is "possible it will finally be decided in January, or even after".

As a result of its decision to fly to the regional airport, Ryanair 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.

Ryanair has warned that it may be forced to stop flying to Charleroi, at least temporarily, if the EC rules against it.

Recommended