Ryanair slams new EU probe

Ryanair tonight slammed a new European Commission investigation into its operations as “spurious and baseless”.

Brussels announced a probe into a complaint alleging that Bratislava airport has given Ryanair a favourable deal on reduced airport charges which could breach EU state aid rules.

A Commission statement said the airport had so far refused to supply EU officials with a copy of the agreement with Ryanair, adding: “Without access to this document, and on the basis of the information provided by the complainant, the Commission has doubts about its (the agreement’s) compatibility with EU rules on State aid.”

The latest clash between the Brussels regulators and the low-cost carrier comes on the eve of a court appeal by Ryanair contesting a Commission decision more than four years ago outlawing a similar agreement between the airline and Belgium’s Charleroi airport.

In that case, subject of a hearing in the European Court of First Instance (CFI) in Luxembourg tomorrow, the Commission said some reduced landing fees and discounted ground handling charges enjoyed by Ryanair were incompatible with EU rules.

Tonight Ryanair’s head of regulatory affairs, Jim Callaghan, responded to the latest state aid inquiry in a statement claiming the two events were linked.

“This baseless and spurious investigation in Bratislava is just the latest example of the EU applying one set of rules for flag carrier airlines and another discriminatory set of rules for Ryanair, and is a pathetic attempt by the European Commission to put pressure on the European Court of First Instance on the eve of the Charleroi appeal hearing,” he said.

“We are confident that the CFI will overturn the Commission’s patently flawed, anti-competitive Charleroi decision, and call on the Commission to stop ignoring… continuing unlawful State aid for the inefficient high-fare flag carrier airlines while pursuing baseless complaints by flag carriers against low-fare airlines operating out of regional and secondary airports.”

He called on the Commission to “start promoting competition and consumer choice, and end unlawful State aid to flag carrier airlines”.

A Commission spokesman emphasised tonight that the launching of the new inquiry did not prejudge the final outcome.

The agreement under investigation was allegedly concluded in December 2005 and runs until 2016, offering Ryanair reductions which, said the Commission “could be as high as a 31% discount for existing destinations and a 48% discount per flight for new scheduled destinations.”

If the reductions are confirmed, said the spokesman, they would not be covered by EU State aid rules if they were based on Ryanair’s “prospects of profitability in the longer term”.