The Commission decided to open a formal investigation into the advantages granted to the airline when it set up its first base in…
The Commission decided to open a formal investigation into the advantages granted to the airline when it set up its first base in mainland Europe at Charleroi in 2001. It has doubts regarding the nature of the measures taken by the Walloon Region and by Brussels South Charleroi Airport, which exclusively benefit Ryanair and might constitute State aid incompatible with the proper functioning of the internal market.
The Commission is opening its formal investigation into the advantages granted to Ryanair by the Walloon Region and the airport management company (Brussels South Charleroi Airport):
- The advantages granted by the Walloon Region include a reduced landing fee to the exclusive benefit of Ryanair.
- BSCA granted Ryanair concessions concerning in particular the costs of recruitment, training and subsistence of Ryanair staff, ground-handling prices, the opening of new routes and the provision of office space. In addition, BSCA makes a substantial contribution to the financing of a joint promotion and advertising enterprise, which markets Ryanair’s services. In return for the advantages granted by BSCA, Ryanair has assumed certain obligations over a period of several years, which could safeguard the airport’s revenues.
The investigation will have to determine whether the measures benefiting Ryanair taken by BSCA, a public undertaking controlled by the Walloon Region, constitute State aid(1) that could distort competition in favour of this particular company, or whether they are compatible with the principle of the private investor in a market economy.
This formal investigation of the aid Ryanair may have received does not seek to question the development of low-cost activities, which respond to clear consumer wishes, but aims to ensure a level playing field for all airlines.
Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.
