Ryanair Ruling 'More Moderate' Than Expected, Says Brennan

by Robin Pilgrim, LawAndTax-News.com, London

05 February 2004

Speaking following the European Commission's announcement that budget airline, Ryanair will have to repay between 25% and 30% of the EUR15 million in aid that it has received from the Walloon authorities for flying to Belgium's Charleroi regional airport, Irish Transport Minister, Seamus Brennan welcomed the fact that the EC ruling appears to apply only to Ryanair.

In a letter sent to European Transport Commissioner, Loyola de Palacio prior to the EC announcement, Mr Brennan had explained that:

"The Irish administration is very concerned at the possible impact that this decision, if adopted, could have on Irish and European aviation both as regards airports and in particular, low-cost air services."

The letter continued:

"We are particularly concerned that the draft decision on the Charleroi case would appear to establish more general rules under which issues regarding airport charges, discount schemes and other incentives which airports may offer airlines would be judged. It is my view that general rules of this nature should be fully considered by the Transport Council before being applied."

However, according to reports in the European media following the unveiling of the EC decision on Tuesday, the Transport Minister expressed satisfaction that the Commission had dealt with the specific case in hand, rather than attempting to make general rules.

"I am reasonably satisfied now that regional airports will not be unduly affected by this," he announced, adding: "The decision is a more moderate one than the one expected."

Recommended