'Worst fears' for Ryanair over EU probe

No frills airline Ryanair believes its "worst fears" over a Brussels competition probe have been confirmed by a draft EU ruling that will force the company to pay back millions of euros.

The European Commission is investigating whether the airline has benefited from Belgian public cash in a deal to fly into Charleroi airport, 40 kilometres south of Brussels.
 
"It's going to send shock waves through the industry," said Jim Callaghan, head of regulatory affairs for Ryanair.
 
"Our worst fears are being confirmed."

"It's going to be in the millions."

Callaghan said Ryanair had received a "detailed briefing" on the ruling, expected next week, outlining plans to declare a reduced landing fee for the airline illegal - which the company would have to pay back.

Brussels may also force Ryanair and Charleroi airport to reduce the length of their 15 year deal, according to Callaghan, and clamp down on the duration of "incentives" such as financial help in recruitment, staff training and marketing.

Ryanair suggests the Charleroi case will be important for the whole industry, because the European Commission will use the Belgian case to draw up guidelines on airport financing that would affect both public and private airports across the EU.

"The whole industry, especially low fares airlines, is going to be seriously hampered by the commission decision," said Callaghan.
 
"Airports like Charleroi will be extremely restricted as to what they can offer low fare airlines. It will throw out years of efforts of using these airports to develop the low fare market."

Ryanair said that it would appeal a negative commission decision at the European Court of Justice.

• Previous article
• Next article