Hopes of breaking bad luck in Europe

RYANAIR will be hoping its luck in legal challenges changes as it launches another argument with the European Commission.

The budget carrier has faced the commission several times and lost.

Fresh in Ryanair’s mind is last month’s decision bythe EU to block its bid for Aer Lingus on competition grounds.

Competition Commissioner Neelie Kroes ruled in June that it would give Ryanair a dominant position in the Irish aviation market and would be bad news for consumers.

The decision, which Ryanair claims was politically motivated, is being challenged in the European Court of FirstInstance.

In 2004 the commission was successful in challenging an agreement between Ryanair and the Walloon local authority that runs Charleroi Airport in Brussels. Ryanair is the main user of the airport and received heavily discounted airport charges and support for marketing the routes.

The EU said this was unfair to other airlines and ordered Ryanair to repay €4m to the Walloon local authority. Ryanair has appealed this ruling.

Brokers said yesterday that while the move was typical publicity stunt by Ryanair, it did have serious implications.

“Although a rant, the Ryanair statement does underline uncomfortable home truths about national governments blatantly protecting their [flag carriers], especially those whose finances are hopeless — like Alitalia and Olympic,” Goodbody analyst Joe Gill said.

NCB Stockbrokers analyst Neil Glynn said the argument put forward by Ryanair — that other airlines are receiving favourable deals — should help it when it is looking for discounts from airports, particularly in France.