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Image header Agence Europe
Europe Daily Bulletin No. 8546
Contents Publication in full By article 24 / 36
GENERAL NEWS / (eu) eu

/STATE AID: Ryanair loses another case on aid received in Sweden

Brussels, 19/09/2003 (Agence Europe) - A Swedish court on Tuesday declared the whole marketing support package granted by the Nyköping regional government to Ryanair illegal. This aid had been granted in connection with the low-cost airline's creation of a new operational hub at Stockholm Skavsta, the private airport managed by TBI. It was largely the non-transparent procedure, which did not guarantee non-discrimination, which led to the decision.

Although the European Commission has made no comment, it appears that this new decision- after the ruling by the administrative court in Strasbourg on 24 July- does not come down in favour of the airline in the report on aid received in Charleroi, which is currently being investigated by the Directorate General Transport (see EUROPE of 9 September, p.14). Various observers, from outside the dossier, have even pointed out that Skvasta had been held up by Ryanair as the perfect example of how it was possible to reach agreements of this kind with private, as well as state, airports.

Charleroi Airport (Brussels-South) has, indeed, granted Ryanair many benefits: exoneration from landing fees, changes to the airport's opening times, 90% reduction of ground-handling charges, an undertaking to compensate the airline in the case of any changes to airport taxes, the granting of direct aid as compensation for staff costs and the opening of new routes, the setting up of a joint promotion and publicity company, and funding promotional material. The Commission has raised three questions on each of these measures: can they be seen as state aid under Community law? Is this aid illegal? Can it be covered by general interest? At the current stage of investigation into the dossier, the existence of state aid seems to have been demonstrated. Also, the substantial reduction in tax and charges and the fact that Charleroi airport paid the airline a subsidy- under various names- appear, if not illegal, at least somewhat dubious. This particularly from the point of view of whether these measures could also be offered to Ryanair's competitors. These doubts have only been reinforced by the various legal decisions returned in France and Sweden, and the negative opinion of the regional auditory chamber of Midi-Pyrenees (France). But, as the Commission spokesperson points out, "each case stands alone". And "only when the Charleroi dossier has been closed will we decide what to do for the other complaints filed". There have been several complaints about Ryanair's establishment in France (in Tarbes and Strasbourg) and Germany.

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