EC orders Ryanair to repay illegal subsidies

The European Commission has ordered Ryanair to repay millions of euro in illegal discounts it received from Charleroi Airport in Belgium.

The commission said the discounts offered exclusively to the Irish airline were in breach of EU competition laws.

It said Ryanair should repay around €4.5m of the subsidies.

A spokesman for the airline claimed earlier today that the ruling would lead to higher fares and set back budget travel by 20 years.

Fianna Fáil MEP Gerry Collins has also criticised the EC decision, saying it was against the spirit of enterprise and the promotion of regional development.

The EC decision allows Ryanair to benefit from subsidies that are designed to promote “genuine development of new routes under clearly defined conditions”.

However, it outlaws other direct aid designed to encourage Ryanair to operate into and out of Charleroi.

The Irish airline reached a deal with the Charleroi authorities in 2001 allowing it to avail of 50% discounts in landing taxes and €1 landing charge per passenger.

The normal rate is up to €13.

Ryanair also received more than €500,000-a-year from the Charleroi authorities to cover the cost of accommodating crews between flights and more than €700,000 towards the cost of a pilot-training programme.