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

Court of Auditors report, European Anti-Fraud

Thursday morning MEPs debated a report from the European Court of Auditors on EU expenditure in 2007. more »

Cars sold 2 for 1 as sales crash

Wander along any supermarket aisle and you'll see a number of two-for-one offers. It's not something we're used to seeing at our local car showroom. more »

Big Three autos plead for help

The leaders of the so-called Big Three of the U.S. auto industry were on the hot seat on Capitol Hill. more »

HP Announces Preliminary Fourth Quarter Results

HP today announced preliminary results for the fourth fiscal quarter 2008 with revenue of $33.6 billion, a year-over-year increase of 19% or 16% when adjusted for the effects of currency. more »

Opening up the labour market

When the EU expanded in 2004, some of the 15 existing EU countries were worried they would be flooded by workers from eastern and central Europe. more »

Monday in Strasbourg: wage gap, euro at 10, EuroMedscola

Monday MEPs discussed ways to narrow the gender pay gap that still exists in Europe, despite 30 years of legislation. more »

MEPs' diagnosis on economy ahead of Washington G20

The financial crisis has become a major threat to the economies, jobs and lives of millions worldwide. more »

Tightening the net on overfishing

Fisheries in the EU are regulated to protect stocks from overfishing and prevent damage to marine ecosystems. more »

Energy in an emergency

Energy prices in the EU have risen by an average of 15% in the last year and Europeans wonder whether speculators are driving up oil prices. more »

USA Treasury will focus on investing in bank shares

Treasury Secretary Henry Paulson offered an update on the government's financial rescue efforts. more »