Ryanair willing to pay back 4 million euros (Merged)

[cortilla]

Ryanair agreed to pay back the 4 million euros today to the Walloon regional government that it received as a 'subsidy' for use of Brussels Charleroi. The money is to go into a form of escrow account pending an appeal to the decision made by the european union.

This is what i heard on the radio earlier today, havn't got a link for it though.

[cortilla]

all over belgian radio news mate:ok:

[Mode7]

BBC news 28/10/04

Budget airline Ryanair will repay the £2.8m (4m euros; $5.1m) in illegal subsidies it got to encourage it to stay at Charleroi airport in Belgium.

The cash will go into an escrow account until its appeal against a repayment order is heard in the European Court.

In February, EU competition officials ordered Ryanair to repay the money to the southern Belgian Walloon region.

If it wins its appeal, the funds plus interest will go to Ryanair, otherwise they will go to Walloon authorities.

'Ordinary consumers'

The European Commission ruled earlier this year that discounts on landing fees and ground handling services at the publicly-owned airport near Brussels should be repaid because they could be classified as illegal subsidies under European Union anti-trust rules.

Ryanair is challenging the decision and has said setting up and maintaining a base at Charleroi, at a cost of 40m euros, exceeded any discount it got from the Walloon region.

In May, Ryanair chief executive Michael O'Leary said he would refuse to pay and filed an appeal to the European Court of First Instance. In September, the Belgian government had told Ryanair it must repay 4m euros within a month.

The no-frills carrier said it was confident the court would overturn the Commission's decision.

It can take the court up to two years to make a decision in these types of cases.

Ryanair head of communications, Paul Fitzsimmons, said the partnership had "enabled millions of ordinary consumers to fly at Europe's lowest fares and encouraged the development of unused, empty secondary regional airports, at Brussels Charleroi, and throughout Europe".

The authorities in Charleroi, a region of high unemployment south of Brussels, have been concerned about the economic impact on the local community should Ryanair no longer use the destination.

[Runway 31]

Try the RYR website under news and you will find the details there.

[jmc-man]

Well, if we are to believe in the words of Michael O'Leary, Hell has just experienced it's first snow storm.

[itchy kitchin]

I'm no lover of Ryanair, and forgive me if this sounds a little naiive, but if the deal worked for Charleroi, and the deal worked for the airline, what's the problem? If no other operators want to operate to/from there, then an "incentive" to keep an airline there is a logical step. :confused:

[Memetic]

As the EU is being so agressive on this subsidy can we expect Iberia and Alitalia to need to make similar provisions so that they can pay back the handouts that they have had? I'll not hold my breath.