Ryanair boss threatens to quit Belgium

The boss of no-frills airliner Ryanair today threatened to pull out of Belgium if the EU declares the subsidies it receives at Charleroi airport are illegal.

“A negative ruling won’t impact our financial position, we will just move the aircraft to other bases,” said chief executive Michael O’Leary, adding that he was already in discussions with two other airports in Europe.

The Irish company has four aircraft based in Charleroi, south of Brussels, serving around two million passengers a year with 12 destinations.

The European Commission, which enforces EU competition rules, has been investigating the legality of subsidies Ryanair receives from the local government to use publicly owned Charleroi airport, which is in a struggling region south of Brussels.

Ryanair has staunchly defended its subsidies, saying the package was offered to other airlines on a non-discriminatory basis. It also argues that it would have to raise fares without them.

“A negative decision will do untold damage to the growth of low fare air travel and competition in European air transport,” O’Leary said.

But competitors such as Virgin Express, which is based at Brussels’ Zaventem international airport, accuse Ryanair of unfair competition.

Ryanair promised to take any decision against it to court, but said it would be “forced, temporarily, to close the base” and transfer its planes to a privately owned European airport while the appeal is pending.

It also said it would immediately enter into negotiations with the Walloon regional government and others “to explore the possibility of the airport being privatised and a similar long term, low cost arrangement being put in place.”