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Walloon Authorities Threaten To Sue Ryanair

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

17 September 2004

Transport Minister for the Walloon region of Belgium, Andre Antione revealed on Wednesday that the regional authorities have written to Irish low-cost airline, Ryanair, calling for the return of a portion of the state aid paid to the firm in return for its establishment of a regional hub at Charleroi airport.

Earlier this year, the European Commission ruled that the subsidies received by the budget carrier from the Walloon authorities represented illegal state aid.

Speaking to reporters, Mr Antoine announced that the Walloon government has asked for the return of EUR3.9 million, and is prepared to sue if the airline does not voluntarily begin to pay back the subsidies.

"In a case of no voluntary action, the Walloon region will see itself forced to launch a legal action to recover the aid," he explained.

Ryanair has been given until the middle of next month to respond.

The EC has approved the proposed refund, and is currently scrutinising the new airport charges and start-up subsidy regime put forward by the Walloon authorities.

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