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Air France Complains To EU Against Ryanair

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  • Air France Complains To EU Against Ryanair

    AIR FRANCE COMPLAINS TO EU AGAINST RYANAIR

    Tert.am
    16:09 ~U 12.03.10

    Air France-KLM (AF.FR) has filed a complaint with the European
    Commission over alleged illegal state aid received by Ireland-based
    low-cost airline Ryanair (RYA.DB), the company said Thursday, reports
    The Wall Street Journal.

    The complaint which was lodged with the commission, Europe's highest
    antitrust authority in November 2009, concentrates on financial
    aid Ryanair "receives from French regional and local airports,"
    the airline said in a statement.

    Ryanair's agreement to serve regional French airports is conditional
    on the airport authorities' financially aiding the operations in the
    form of reduced airport taxes, preferential ground handling rates at
    certain airports or marketing aid.

    Air France alleges these measures are contrary to European laws on
    giving regional aid as they are not temporary nor do they decrease
    over time. "On the contrary, they are considered to be permanent,"
    the company said.

    Ryanair spokesperson Stephen McNamara said the filing was a "another
    waste of time from Air France, which was last year found by the
    commission to have received illegal state aid."

    McNamara pointed out that Ryanair hasn't yet been found guilty of
    receiving illegal state aid once, while Air France was in 2009 ruled
    to have exclusively benefited from reduced airport charges on domestic
    routes in France.

    According to the European Commission's guidelines on giving aid to
    regional airports, the aid must be linked to the start of activity at
    the airport such as covering installation costs, said the commission's
    competition spokesperson Amelia Torres. Any possible aid must also
    be progressively reduced and limited in time, she added.
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