Ryanair EU ruling !?
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Ryanair EU ruling !?
Just heard on the radio that they EU have ruled against Ryanair in the EU courts. ( i had a look but couldn't find it on the BBC website ).
From what i could hear it sounded like ' Ryanair will have to payback monies to Charleoir airport '. There was something else mentioned but i missed what was said.
If any of you news guru's have any links to the story it would be appreciated
From what i could hear it sounded like ' Ryanair will have to payback monies to Charleoir airport '. There was something else mentioned but i missed what was said.
If any of you news guru's have any links to the story it would be appreciated
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From EUBusiness.com
Brussels to seek repayment of aid by Ryanair, says airline
27 January 2004
Irish no-frills airline Ryanair said Tuesday it expects the European Commission to seek repayment of millions of euros in aid it received for setting up at Belgium's Charleroi airport.
The carrier, which has helped change the landscape of European air travel in recent years, slammed such a decision as bad for the whole low-cost air travel industry, and reiterated that it could pull out of Charleroi.
"There are portions of the arrangement (with Charleroi airport) that are going to be repaid. It's going to be in millions of euros," said a Ryanair official, Jim Callaghan.
The commission, the EU's executive arm, is due to announce next week its decision on whether Ryanair breached EU competition law over Charleroi. The airline has warned a negative ruling could harm low-cost air travel in Europe.
EU officials remain tight-lipped about the commission's impending decision on the case, with one source indicating only that it is likely to be a "balanced" decision.
But Callaghan, Ryanair's head of regulatory affairs, said after talks in Brussels that the commission was set to make "a negative decision, not only for Ryanair but also for the whole industry."
He also reiterated that the carrier could pull out of Charleroi, although indicated that a decision on this would depend on exactly what the Commission decides.
"If this thing goes horribly wrong that is still a possibility," he said. "If the result of the Commission investigation is to increase our cost base in Charleroi, we will have no option."
Ryanair has helped transform air travel in Europe by pioneering low-cost point-to-point flights using smaller and cheaper regional airports and avoiding national hubs.
The airline's boss Michael O'Leary reiterated this month that he believed the decision will go against him, warning that it could "devastate Charleroi, will be bad for consumers and bad for low-cost air travel."
The decision has been awaited for months, and was at one stage expected before Christmas. Commission officials regularly rebuff questions about the case.
Coincidentally, 10 no-frills airlines launched a new association Tuesday to press governments and authorities to open the way for further development of cut-price air travel.
The European Low Fares Airline Association (ELFAA) said it would lobby hard "to ensure that European policy and legislation promote free and equal competition to enable the continued growth and development of low fares.
"Low fares airlines have made a direct contribution to the European integration process by making air travel possible to price-sensitive consumers," said Wolfgang Kurth of German low-cost airline Hapag-Lloyd Express.
The 10 ELFAA members, from nine EU member states, are: Air Berlin (Germany), Basiqair/Transavia (Netherlands), Flybe (Britain), Flying Finn (Finland), Hapag-Lloyd Express (Germany), Ryanair (Ireland), Sky Europe (Slovakia), Sterling (Denmark), Sverige Flyg (Sweden) and Volareweb (Italy) .
Brussels to seek repayment of aid by Ryanair, says airline
27 January 2004
Irish no-frills airline Ryanair said Tuesday it expects the European Commission to seek repayment of millions of euros in aid it received for setting up at Belgium's Charleroi airport.
The carrier, which has helped change the landscape of European air travel in recent years, slammed such a decision as bad for the whole low-cost air travel industry, and reiterated that it could pull out of Charleroi.
"There are portions of the arrangement (with Charleroi airport) that are going to be repaid. It's going to be in millions of euros," said a Ryanair official, Jim Callaghan.
The commission, the EU's executive arm, is due to announce next week its decision on whether Ryanair breached EU competition law over Charleroi. The airline has warned a negative ruling could harm low-cost air travel in Europe.
EU officials remain tight-lipped about the commission's impending decision on the case, with one source indicating only that it is likely to be a "balanced" decision.
But Callaghan, Ryanair's head of regulatory affairs, said after talks in Brussels that the commission was set to make "a negative decision, not only for Ryanair but also for the whole industry."
He also reiterated that the carrier could pull out of Charleroi, although indicated that a decision on this would depend on exactly what the Commission decides.
"If this thing goes horribly wrong that is still a possibility," he said. "If the result of the Commission investigation is to increase our cost base in Charleroi, we will have no option."
Ryanair has helped transform air travel in Europe by pioneering low-cost point-to-point flights using smaller and cheaper regional airports and avoiding national hubs.
The airline's boss Michael O'Leary reiterated this month that he believed the decision will go against him, warning that it could "devastate Charleroi, will be bad for consumers and bad for low-cost air travel."
The decision has been awaited for months, and was at one stage expected before Christmas. Commission officials regularly rebuff questions about the case.
Coincidentally, 10 no-frills airlines launched a new association Tuesday to press governments and authorities to open the way for further development of cut-price air travel.
The European Low Fares Airline Association (ELFAA) said it would lobby hard "to ensure that European policy and legislation promote free and equal competition to enable the continued growth and development of low fares.
"Low fares airlines have made a direct contribution to the European integration process by making air travel possible to price-sensitive consumers," said Wolfgang Kurth of German low-cost airline Hapag-Lloyd Express.
The 10 ELFAA members, from nine EU member states, are: Air Berlin (Germany), Basiqair/Transavia (Netherlands), Flybe (Britain), Flying Finn (Finland), Hapag-Lloyd Express (Germany), Ryanair (Ireland), Sky Europe (Slovakia), Sterling (Denmark), Sverige Flyg (Sweden) and Volareweb (Italy) .
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This is a very disappointing move and has to call into question the free market intentions of the EU. Sure, they can ask FR to repay the monies (although if the airport is subsequently privatised, it doesn't preclude the newly privatised company from giving the money back in another way?), but the Court also needs to set out the extent to which a state/publicly owned enterprise can compete against a private (or indeed another state owned) enterprise. Obviously we don't know the specifics of the ruling, but it would be appalling if limitations had to be placed on the efforts of a small airport to gain new services.
If the court orders the repayment of monies, how is this monitored?
While this may appear to be a spike in FR's plans, it could well provide an opportunity, in the long term, to get its own (including its money!) back. I'm not often a MO'L supporter, but in this case, I make a strong exception.
If the court orders the repayment of monies, how is this monitored?
While this may appear to be a spike in FR's plans, it could well provide an opportunity, in the long term, to get its own (including its money!) back. I'm not often a MO'L supporter, but in this case, I make a strong exception.
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Akerosid, you say "it has to call into question the free market intentions of the EU"
Isn't that what this whole thing is about, that the whole deal of Ryanair with Charleroi WASN'T done in a free market sort of way. That in a free market it shouldn't happen that one airline gets government subsedies?
Isn't that what this whole thing is about, that the whole deal of Ryanair with Charleroi WASN'T done in a free market sort of way. That in a free market it shouldn't happen that one airline gets government subsedies?
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I take it that the Commission will now look at unfair/illegal subsidies to other carriers ie Air France/Alitalia etc.
If it works against Ryanair then it should apply equally to companies such as those as well.
If it works against Ryanair then it should apply equally to companies such as those as well.
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HotelCharlie - I am of course willing to be corrected, but as I understand it a lot of major carriers receive discounts from airports. Secondly, I don't see any other carriers flying to Charleoir (that's a b***er to spell) - if another wanted to, couldn't the airport give them a discount as well, thus boosting business?
Edited to remove asterisks...
Edited to remove asterisks...
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Has the Ryanair bubble burst ?
For a guy who shouts at his passengers , and just shows the door to staff who wish to make a point, is he at last is being shown that sheer arrogance is unwelcome.
FT link
Salient points:
* FR to re-examine the delivery schedule of new 737-800's
* Expecting average fares to decline by between 25 and 30 per cent year-on-year in the final quarter compared with a fall in yields of 10 to 15 per cent during the first nine months.
* Launching a "detailed review" of its cost base in order to halt the profits decline.
* Slowing growth from May onwards.
* Buzz to be closed
Is it byebye MOL?
For a guy who shouts at his passengers , and just shows the door to staff who wish to make a point, is he at last is being shown that sheer arrogance is unwelcome.
FT link
Salient points:
* FR to re-examine the delivery schedule of new 737-800's
* Expecting average fares to decline by between 25 and 30 per cent year-on-year in the final quarter compared with a fall in yields of 10 to 15 per cent during the first nine months.
* Launching a "detailed review" of its cost base in order to halt the profits decline.
* Slowing growth from May onwards.
* Buzz to be closed
Is it byebye MOL?
Take off the exceptionals and the frofit was up 10% and with lines like
I dont think they are about to disapear.
Ryanair's passenger volumes in the quarter rose by 54 per cent from 3.9m to 6.1m
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Ryanair warned they will only make €215 million profit this year.
All airlines should be so run. The next couple of years are going to be tough for the industry with capacity shrinking everywhere, under these circumstances my money is still on MOL.
I think we need to spare a thought for the boys and girls at BA who are having to deal with today's real story !
All airlines should be so run. The next couple of years are going to be tough for the industry with capacity shrinking everywhere, under these circumstances my money is still on MOL.
I think we need to spare a thought for the boys and girls at BA who are having to deal with today's real story !
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The same rules that will apply to Low-Cost carriers should then also be applied to Cargo carriers like DHL in Belgium.
There have never been any complaints about indirect subsidies for freight-carriers in Liége and Brussels-they run into millions as well !!!!
There have never been any complaints about indirect subsidies for freight-carriers in Liége and Brussels-they run into millions as well !!!!
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It’s becoming highly suspicious that Brussels, has managed to put the nail into the coffin concerning aviation in Belgium. First SABENA then Sobelair and now they want Ryanair. Make’s you wonder what’s behind all these decisions. Belgium has been practically left without an aviation industry. No airlines and now, with one of the only airlines that is successful there, they also want them shoved out! Their must be some strong lobbying going on in the hall ways of the EU government!!!
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The Belgians are good guys, most of the decisions made in Brussels are made by political giants from outside the country, including some Brits - leave the Belgies alone ..... they make great beer and chocolates, have the best 2 female tennis players in the world and have never declared war on anyone.
That's okay by me or in the bizarre French of Plastique Bertrand, Belgian punk rocker "Ca plan pour moi"
That's okay by me or in the bizarre French of Plastique Bertrand, Belgian punk rocker "Ca plan pour moi"