Ryanair back in court in fresh row over airport subsidies

Published: 1 January 2005 y., Saturday
Ryanair is in trouble again over subsidies received from continental airports, with Air Berlin suing Germany's Lübeck airport over payments of up to €10m (£7.1m) made to Ryanair since 2000. Air Berlin, which is competing with the low-cost airline to break into the budget carrier market in Germany, is claiming that Lübeck is distorting competition by paying unfair and illegal subsidies to its Irish rival. Backed by seven airlines, the German carrier filed a complaint against the airport's operator, Flughafen Lübeck, with the regional court in Lübeck, challenging annual payments of €2m to Ryanair. The airlines want Ryanair to pay back past subsidies. Air Berlin also said the payments were made when the airport posted losses of about €2.6m in 2002 and €3.7m in 2003. Michael O'Leary, the chairman of Ryanair, declined to comment in full yesterday. He merely said: "It makes for good press releases at this time of year." Lübeck airport, which is situated near Hamburg in northern Germany, is one of Ryanair's most important bases in the country after Frankfurt-Hahn. Europe's biggest low-fare carrier flies six routes to and from the city, including Stansted and Prestwick. The lawsuit comes as Ryanair continues to fight against a €4m fine from the European Commission for receiving illegal subsidies to fly to Charleroi airport near Brussels. In October, the Irish carrier agreed to repay the money into a blocked account but would get it back if it wins its appeal to the European Court of Justice. The carriers supporting Air Berlin's claim are members of a group of German airlines called ADL. The group includes LTU Lufttransport Unternehmen, Aero Lloyd Flugreisen, Thomas Cook's Condor, Germania, TUI's Hapag Lloyd, Britannia Airways and Fly FTI.
Šaltinis: news.independent.co.uk
Copying, publishing, announcing any information from the News.lt portal without written permission of News.lt editorial office is prohibited.

Facebook Comments

New comment


Captcha

Associated articles

The most popular articles

Budget negotiations - MEPs want specific budget line for stabilisation mechanism

A specific EU budget line for the new EU stabilisation mechanism should be created as soon as possible, to ensure its credibility, Council, Commission and Parliament negotiators agreed at a three-way meeting on Wednesday. more »

Break on roaming fees for mobile phone customers

New EU rule will help phone-users avoid astronomical bills for web-surfing and downloads abroad. more »

A toolbox for stronger economic governance in Europe

The Communication approved today by the Commission builds on the principles presented on 12 May to reinforce the economic governance in the European Union. more »

Latest report on taxation trends in the EU

Eurostat report just published shows that the crisis has brought some lower taxes. more »

Food prices: new legislation needed to improve price transparency and farmers' returns

New legislation is needed to ensure fair returns to farmers and transparent prices to consumers, by enforcing fair competition throughout the food supply chain, said Agriculture Committee MEPs on Monday. more »

Fisheries: fair competition needed between imports and European producers

Fish imports play a crucial role in supplying the European market, yet fisheries and aquaculture are strategic sectors that do not lend themselves to a purely free-trade approach, believes the EP Fisheries Committee. more »

The President: Dynamic cooperation with other countries of the EU is a priority for Lithuania

I will support every proposal that strengthens cooperation among the European Union's Member States and serves Lithuania's interests," President of the Republic of Lithuania Dalia Grybauskaitė said at the meeting with EU Member States' ambassadors resident in Lithuania. more »

World Lithuanian entrepreneurs are gathering in London

The fourth World Lithuanian Economic Forum “High tech innovation & investment: local to global” will start in London on 22 June. more »

Enhanced information exchange will contribute to the creation of single Baltic-Nordic community, Lithuania's Minister of Foreign Affairs says

Lithuania aims for the five Nordic countries and three Baltic States to become single community of values, which would be linked by a versatile quality of democracy, security and everyday life. more »

Parliament sets up special committee on EU budget reform

MEPs decided on Wednesday to create a special committee to prepare for the EU's next long-term budgetary framework. more »