Ryanair face another EU investigation
13.03.08
Ryanair is in the sights of the European Commission again. An agreement between the airport of Bratislava and the Irish low-cost carrier is being investigated, following complaints by rival airlines.
According to these complaints, the agreement signed in 2005 - which lasts until 2016 - offers reductions in airport fees for Ryanair to existent destinations at 31%, and for new flights at 48%. The European Commission has decided to launch a formal investigation into the agreement.
The Competition Commissioner, Neelie Kroes, has opened an investigation into the agreements. The Commission decision also requires the airport to submit a copy of the agreement to it, which it has so far refused to do. Without access to this document, and on the basis of the information provided by the complainant, the Commission has doubts about its compatibility with EU rules on State aid.
The investigation will decide whether the reductions, if confirmed, are based on prospects of profitability in the longer term, in which case they would not be covered by State aid rules. The Commission will also assess whether the decision to grant the rebates is backed by public authorities.
A spokesman for Ryanair said: ‘The Commission’s investigation is based on a spurious complaint by ‘a competitor’, likely either Austrian Airlines or Vienna Airport in order to block competition from Ryanair and Bratislava airport. The investigation is completely baseless.’
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