Ryanair Decision Threatens MAN Agreements?( Merged)

[dwlpl]

Ryanair are led to believe that their agreement with the publically owned airport of Brussels Charleroi is unlawful in the eyes of the European Commission.

In a press conference today Ryanair highlighted a number of similar agreements that exist in Europe between airlines and airports including agreements made by Manchester Airport with bmibaby and My Travel Lite.

For more details go to www.ryanair.com/press/2003/nov/reg-en-121103.html

[brabazon]

I am not aware of the substance of the agreements at MAN, but I was under the impression that the issues related to Ryanair's dealings with Charleroi were not solely related to reduced airport charges, but that, allegedly, accommodation was being paid for by the local authority and other costs which would normally be borne by the airline were being paid for by "tax payers" money.

[dwlpl]

paid for by "tax payers" money

I think thats at the heart of the matter.

The airports (Manchester, Berlin Schonefeld and Koln/Bonn) Ryanair states in its press release are all publically owned as opposed to privately owned.

[Caslance]

No, dwlpl. The heart of the matter is the additional "sweeteners" that Brabazon mentioned.

What relevance does the ownership of the airport in question have to this?:confused:

[dwlpl]

That may well be correct and would come under the financial package that was 'negotiated'.

The Commission, going by what the press conference said, looks as though that they have found the parties involved of giving/receiving local tax payers money, which the Commission says is unlawful.

I presume that the airports named by Ryanair are owned by the local government.

[Caslance]

Sounds like a wee bit of wishful thinking going on there, dwlpl!

[Buster the Bear]

Ryanair pre-empts EC defeat with Charleroi buy-in talks

Ryanair will start talks with Brussels Charleroi owners ‘to explore the possibility’ of privatising the airport if, as the carrier expects, the European Commission finds that its deal with the airport is unlawful.

In a statement issued this morning Ryanair said that it has ‘learnt’ that substantial parts of its contract will be designated as unlawful state aid, although it has yet to see the detail.

As well as promising to appeal, Ryanair said that it ‘will immediately enter into negotiations with both Brussels Charleroi and the Walloon government to explore the possibility of the airport being privatised’ in order for it to renegotiate a similar deal with the new private owners.

A Ryanair spokesman declined to comment on whether Ryanair would be prepared to invest in the privatisation. Ryanair’s chief executive Michael O’Leary said in September’s AGM update that Europe needed a level playing field between public and private airports as private airports had more licence to negotiate as they are less regulated and scrutinised than public airports.

Its H1s to end-Sept03 revealed that 'cash and liquid resources stood at €1,161m (£c800m)'.

O’Leary also pointed out today that other low-cost carriers had similar deals with publicly-owned airports – easyJet at Berlin Shoenfield the most recent in a list which includes MyTravelLite and bmibaby at Manchester Airport.

He also took the argument beyond the low-cost airline sector: ‘In other industries, successful low price retailers such as IKEA, Aldi, Lidl and Tesco use lower cost, out of town sites and their purchasing power to lower costs and prices for consumers. Why shouldn’t Ryanair be allowed to do the same in the European airline sector.’

Moderator from Buster: I have just seen the Manchester thread, so this could be combined?

[dwlpl]

What is wishful thinking, caslance?

[Caslance]

"Wishful thinking" is a very nice track from the album "Working With Fire and Steel" by China Crisis. I'm surprised that you don't know that already, what with them being a Liverpool band and everything. ;)

No, I'm only kidding! It just seems a bit odd that MOL chooses to drag Ringway into the issue.

There are a number of "low cost" operators working from Ringway nowadays - MOL's periodic negative propaganda notwithstanding - and I was just wondering whether the two facts were unrelated, that's all.

OK, la? :ok:

[dwlpl]

Obviously the more airports/airlines he brings into the equation the more likely, he hopes, the 'complaint' that the Commission is looking into will be dropped.

I see the Buster has his thread merged with this and there is another, by ShamRoc, on the Rumours forum. Both postees point to what was said by Ryanair re the other airports.

BTW. China Crisis do not come from Liverpool, they are from Kirkby. :=

Cymru am Byth

[Caslance]

Yes, you're probably right there, dwlpl.

Kirkby's close enough from this end of the M56! ;)

Nos da, dwlpl:ok: