Ryanair to Appeal EU's Decision Asking for the Return of EUR8.4 Million in French State Aid -- Update
July 26 2022 - 11:22AM
Dow Jones News
By Anthony O. Goriainoff
Ryanair Holdings PLC said Tuesday that it would appeal the
European Commission's decision that France must recover 8.4 million
euros ($8.6 million) in state aid received by the budget airline,
deemed incompatible with European Union regulations.
The Irish low-cost carrier said it would appeal this decision to
the EU General Court and continue "to make efforts to explain the
dynamics of the liberalized air-transport market to the European
Commission's competition services."
"Having waved through over EUR40 billion in illegal state aid to
Europe's failing legacy airlines over the past two years, including
EUR14.4 billion to Air France KLM from the French and Dutch
governments, EU Commissioner Vestager now bizarrely concluded that
Ryanair's successful partnership with La Rochelle airport in France
involved EUR8.4 million of state aid," the airline said in a
statement.
The EU's executive branch said Tuesday that the French
government must recover the money from the budget airline after
several contracts with La Rochelle airport between 2003 and 2010
constituted illegal state aid.
U.K. carrier Jet2 PLC will also have to repay EUR81,000 in
French state aid due to similar contracts signed with the airport,
the European Commission said.
The contract conditions gave an unfair advantage to both
airlines over competitors as a profit-driven airport operator would
unlikely have granted such conditions, it said.
Although public airports can offer airlines attractive
conditions to stimulate traffic, these shouldn't go beyond what a
profit-driven airport operator would be willing to offer under the
same circumstances, following the market economy investor
principle, the commission added.
"If this principle is not respected, the conditions constitute
state aid and the Commission must then verify whether they can be
considered compatible with the EU rules on state aid," the European
Commission said.
Write to Anthony O. Goriainoff at
anthony.orunagoriainoff@dowjones.com
(END) Dow Jones Newswires
July 26, 2022 11:07 ET (15:07 GMT)
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