Ryanair faces claims of illegal state aid in Italy

FRESH claims that Ryanair has received illegal state aid will be made before the European Court of Justice next week.

An Italian airline is claiming the Irish carrier has received grants from the Italian authorities which constitute unfair competition.

Air One is taking the legal action against the European Commission over its alleged failure to rule on a complaint lodged by the airline in December 2003 about state aid to Ryanair.

The ECJ’s Court of First Instance will hear an application on January 11 by the Rome-based company which will seek to compel the Commission to declare its position on the claim.

Air One claims it was forced to take the action after Brussels failed to reply to its complaint that Ryanair had received “extremely competitive” tariffs at several Italian airports.

The company has also expressed surprised at the lack of response by the commission on the basis that Brussels had already made a finding of illegal state aid against Ryanair in 2004.

The Belgian authorities are currently in the process of suing the Irish airline to recover €2.5 million in state aid which the commission declared illegal. Ryanair has appealed the decision to the ECJ but has agreed to lodge €4.5m in a frozen account pending the outcome of the case.

A Ryanair spokesperson yesterday said the airline was aware of the complaint made against it by Air One.

Meanwhile, the ECJ is to issue a judgement next Tuesday on a challenge by airlines including Aer Lingus and Ryanair to EU legislation which provides improved compensation to disgruntled passengers.

A legal opinion issued by the ECJ last September has already rejected a challenge by two airline representative bodies against the scheme for air travellers who experience delays, cancellations and overbooking on flights.

No-frills airlines argued they could be forced to pay compensation worth more than the price most passengers paid for their tickets.