Ryanair moves on Charleroi subsidies

No-frills airline Ryanair has reserved €4 million in a holding account pending an appeal of an EU subsidy case involving Belgium's Charleroi airport.

Ryanair said in a statement on Thursday that it was "confident" it would win the case at the European Court of Justice, but that it would set aside the funds just in case.

"If Ryanair is successful in its appeal, these funds along with interest will be returned to Ryanair."

"If the appeal fails, these funds will be transferred to the region".

The appeal centres on what Ryanair calls a "seriously flawed" Brussels ruling that the carrier benefited unfairly from secret deals with the Wallonia regional government - the owners of the Belgian airport, 50 km south of Brussels.

As part of a 15 year deal with the Wallonia government, discounts were given to Ryanair on landing fees and ground-handling charges, as well as deals to help with marketing and pilot training.

In February Brussels ruled that 25-30 per cent of the estimated €15 million Ryanair received from Charleroi airport was illegal and would have to be paid back.

"Ryanair is confident that the unlawful decision of the European Commission will be overturned by the European Court and the court will promote the enormously successful partnership between low fares airlines and regional airports", said Ryanair spokeman Paul Fitzsimmons.

The airline's announcement follows a declaration in June that the company would not hand over a single euro in connection with the European Commission's ruling.

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