Irish Transport Minister Warns EC Over Ryanair State Aid Ruling

by Robin Pilgrim, LawAndTax-News.com, London

12 January 2004

Ireland's Transport Minister, Seamus Brennan on Wednesday weighed into the dispute between Ryanair and the European Commission over subsidies received by the low-cost airline for flying to Belgium's Chareleroi airport.

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.

Although an EC decision on the matter is not expected until the end of this month, Mr Brennan announced last week that:

"We will resist any decision which damages cheap airlines."

He also reportedly suggested that European rules for state aid to all airlines should come under scrutiny if the Commission rules against Ryanair.

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