Commission finds Ryanair received no illegal subsidies

Ryanair was found not to have been granted any illegal subsidies by the Finns when they agreed to fly into Tampere Pirkkala airport, the European Commission said yesterday — five years after receiving a complaint from a competitor.

But this is just one of 17 similar cases being investigated by the Commission in relation to agreements made between the Irish low-cost airline and airports all over the EU.

The company welcomed the decision from Brussels yesterday, which provided a rare cessation of hostilities between the airline and the EU institution charged with ensuring competition is fair.

The financial arrangements between the public company that operates the airport in the south of Finland made financial sense and was on similar terms to those which any private investor under market conditions would accept, the Commission said.

The agreement was based on a business plan showing profitability expectations and so conferred no economic advantage to Ryanair. And the business results of the airport confirmed the expectations, the Commission said.

In fact, the arrangement reduced risk, ensured a reduction of overcapacity and a better allocation of resources, contributing positively to the operational and financial situation of the companies operating the airport and increased the market value for their shareholders.

The charges paid by Ryanair and the non-aviation revenue resulting from the airline using the airport cover the underlying costs, the Commission said.

The airport is the third largest in Finland with about 600,000 passengers and is publicly owned by Finavia, which manages 25 airports in the country.