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

Health threat of petrol vapour set to evaporate

When you fill up your car with petrol you often find that your hand will reek of petrol unless you have worn gloves. more »

Falling EU economy set to stabilise as measures take effect

The EU is going through its worst recession since WWII. Inflation has slowed, but employment and public finances are hard hit. The situation should stabilise in 2010. more »

ATM outsourcing helps struggling FIs cut costs

In the current economic environment, banks should carefully analyze the current and future total cost of ownership of their technology assets, and evaluate the outsourcing alternative. more »

Reining in risky investing

Commission proposes first EU law on hedge funds and issues guidelines on bank pay practices. more »

Ways Are Sought to Defend Lithuania’s Business Interests Better

On 30 April, Lithuania’s Minister of Foreign Affairs Vygaudas Ušackas took part in the round table discussion “The European Union’s External Trade Policy and Lithuania’s Positions: Threats and Possibilities for the Lithuanian Industry”. more »

As the number of e-banking users rapidly increases, Bank SNORAS improves this service

Since 28 April this year, the clients of AB Bank SNORAS will be able to process their financial matters in a clearer and more user-friendly environment of “Internet Bank+” system. more »

Paying for the grey

2009 ageing report: Europe tackling the challenge of an ageing population but the recession threatens a setback. more »

3rd Energy Package gets final approval from MEPs

More choice, investment and security of supply lie at the heart of the 3rd energy package. more »

Swine flu fears boost drug giants

Swine flu, a new strain of influenza, has so far left more than a hundred dead. But in one sector, the illness could have huge benefits. more »

Europe's cross-border deal hunters

Central European bargain hunters are crossing borders for the best buys. Slovakian shoppers in Hungary are making the most of their new eurozone membership. more »