Ryanair insists Isle of Man subsidiary not an EU dodge

RYANAIR has denied it is using a little-known, Isle of Man-based company as a vehicle to circumvent an EU ban on regional and State aid.

The company yesterday declined to answer detailed questions about Leading Verge its wholly-owned subsidiary registered in the Isle of Man and which lists Ryanair chief executive Michael O'Leary as one of its directors. Since 2002, the company has increasingly been used by Ryanair to provide services to airports and their associated local authorities which are used by the airline.

Although Ryanair declined to say how many airports had an association with services provided by Leading Verge, it is known the company has agreements to market and promote a number of destinations in France and Austria. Rival competitors claim the airline demands funding under the guise of marketing support packages as a pre-condition before flying services to certain airports.