touch&go
26th Aug 2003, 20:22
Ryanair suspends Strasbourg route
Tue 26 August, 2003 12:56 BST
By Michael Roddy
DUBLIN (Reuters) - No-frills airline Ryanair Holdings says it will suspend its London-Strasbourg service in a row over regional subsidies it receives to fly to secondary European airports.
It was the first time the fast-growing carrier has suspended a service in the face of challenges by competitors, who claim it won unfair contracts to fly to smaller airports.
The European Commission has launched a wider probe into such deals, focusing mainly on Ryanair's contract to use Charleroi Airport in Belgium. A ruling is expected in the autumn.
Ryanair RYA.L said it had no choice but to halt the Strasbourg service, giving four weeks' notice, after it failed to win a stay of a lower court ruling that the aid Ryanair obtained was illegal.
Ryanair said that from September 24, it would shift flights to Baden Baden Airport in Germany, 40 km from Strasbourg.
"If and when we receive a stay on the judgment (or win the appeal), then Ryanair will make arrangements to recommence flights on the London-Strasbourg route," the airline said in a statement.
The Irish carrier denounced French flag carrier Air France AIRF.PA for mounting the legal challenge to the deal Ryanair struck with a local chamber of commerce to start up the route last year.
"It is wrong that anti-competitive court actions of Air France should result in the Strasbourg and the Alsace region losing -- even on a temporary basis -- its only scheduled air service to London," Ryanair said.
The Bas-Rhin Chamber of Commerce and Industry, which manages the airport in eastern France, promised in June 2002 to give the carrier 1.4 million euros to set up two daily round-trip flights between London's Stansted and the capital of the Alsace region.
Brit Air, an Air France subsidiary, was forced to cancel its London-Strasbourg link in face of competition and launched an appeal, saying the aid distorted competition.
Analysts said the Strasbourg-London flight represented one percent of Ryanair's network and they expected little impact on the company.
"It's certainly been well flagged by the company they would suspend the service unless they got the stay," said John Mattimoe, an analyst at Merrion Capital.
Ryanair shares were down 0.15 percent at 6.59 euros in Dublin at 12:52 p.m.
Tue 26 August, 2003 12:56 BST
By Michael Roddy
DUBLIN (Reuters) - No-frills airline Ryanair Holdings says it will suspend its London-Strasbourg service in a row over regional subsidies it receives to fly to secondary European airports.
It was the first time the fast-growing carrier has suspended a service in the face of challenges by competitors, who claim it won unfair contracts to fly to smaller airports.
The European Commission has launched a wider probe into such deals, focusing mainly on Ryanair's contract to use Charleroi Airport in Belgium. A ruling is expected in the autumn.
Ryanair RYA.L said it had no choice but to halt the Strasbourg service, giving four weeks' notice, after it failed to win a stay of a lower court ruling that the aid Ryanair obtained was illegal.
Ryanair said that from September 24, it would shift flights to Baden Baden Airport in Germany, 40 km from Strasbourg.
"If and when we receive a stay on the judgment (or win the appeal), then Ryanair will make arrangements to recommence flights on the London-Strasbourg route," the airline said in a statement.
The Irish carrier denounced French flag carrier Air France AIRF.PA for mounting the legal challenge to the deal Ryanair struck with a local chamber of commerce to start up the route last year.
"It is wrong that anti-competitive court actions of Air France should result in the Strasbourg and the Alsace region losing -- even on a temporary basis -- its only scheduled air service to London," Ryanair said.
The Bas-Rhin Chamber of Commerce and Industry, which manages the airport in eastern France, promised in June 2002 to give the carrier 1.4 million euros to set up two daily round-trip flights between London's Stansted and the capital of the Alsace region.
Brit Air, an Air France subsidiary, was forced to cancel its London-Strasbourg link in face of competition and launched an appeal, saying the aid distorted competition.
Analysts said the Strasbourg-London flight represented one percent of Ryanair's network and they expected little impact on the company.
"It's certainly been well flagged by the company they would suspend the service unless they got the stay," said John Mattimoe, an analyst at Merrion Capital.
Ryanair shares were down 0.15 percent at 6.59 euros in Dublin at 12:52 p.m.