Following the announcement last week that low-cost Irish airline, Ryanair is likely to be obliged by the European Commission to pay back millions of euros in aid afforded to it by the Belgian authorities, Irish Transport Minister, Seamus Brennan has hinted that Ireland's government may make a stand on the issue.
According to a Transport Ministry statement, although Ireland "has no direct power to intervene in the Commission's deliberations, the minister said that he would consider placing the issue on the agenda of the next meeting of transport ministers in March".
Following a meeting with EU Transport Commissioner, Loyola de Palacio on Tuesday, Mr Brennan reportedly acknowledged that it would be "inappropriate" for him to come up specifically in support of Ryanair, but explained that "any decision to penalise Ryanair could have implications not just for the low fares airline, but also for Aer Lingus and regional airports in Ireland".
According to the Financial Times, which last week saw a copy of the draft EC report set to be officially released tomorrow, the Commission has ruled that the 50% reduction in landing charges, and the ground-handling fee rebates afforded to the airline by the Walloon authorities for flying to the Charleroi regional aiport, constitute illegal state aid.
The EC also frowned upon other benefits received by Ryanair from the Belgian authorities, which include contributions towards training and accommodation for Ryanair staff, payments of EUR160,000 for each new route opened from Charleroi, and payments towards the cost of recruiting and training crew and pilots.
The FT revealed that according to the draft decision, such benefits must henceforth be limited to 50% of overall costs, may only be granted for a maximum of three years, and must be linked to the opening of new routes.
The decision, which has been described by a Ryanair official as confirming the company's "worst fears", has been welcomed by established major airlines, who feel that it creates "a level playing field" in terms of subsidies between major carriers and budget airlines.
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