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Ryanair Facing New Dispute Over 'Illegal' Subsidies

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

05 January 2005

It emerged earlier last week that low-cost Irish airline, Ryanair is facing another dispute over allegedly illegal subsidies offered by a regional European airport.

As the no-frills carrier continues to fight the verdict delivered by the European Commission in a similar case involving Belgium's Charleroi airport, reports in the European media revealed last week that Germany's Air Berlin has filed a complaint over subsidies provided to Ryanair by Flughafen Lübeck, which operates the Lübeck airport, near Hamburg.

Air Berlin claims, reportedly with the support of seven other European airlines, that annual payments made by the airport operator of EUR2 million represent an illegal distortion of competition. Its lawsuit, filed with Lübeck's regional court, calls for the return of around EUR10 million in subsidy payments overall.

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