Ryanair threatens pullout from Charleroi base
The EC is investigating complaints that the airline received illegal subsidies from the Walloon regional authority, which owns the airport.
A report in yesterday's Financial Times suggested that the EC would take a "tough line" against Ryanair and would make the airline repay the subsidies.
Sources yesterday said that Ryanair could be forced to repay up to €30m if it has to pay the full amount in airport taxes and handling charges retrospectively and repay subsidies it receives for operating out of the small airport south of Brussels.
The airline said that it would appeal the findings to the European Court, and chief executive Michael O'Leary threatened to pull out of the airport.
Brokers said yesterday that the investigation is the "single most important event hanging over" Ryanair's business model and was holding back the share price.
"The fact is we don't know the commission's view, and while that's the case the stock will continue to trade at a discount unjustified by its financial performance," said Joe Gill of Goodbody Stockbrokers.
Sources in the EC suggested Ryanair is likely to have to pay the full amount of airport taxes covering passenger, landing and parking fees about €2m because they are paying just €1 per passenger, which is half the normal sum.
The question of whether they would be forced to pay the full sum of €10 per passenger for ground handling which would amount to about €27m is not clear.
They may not be required to repay the almost €3m they have received for opening new routes, hotel accommodation for their staff, pilot training, office facilities and marketing.
However, because the scenario is a completely new one the deals offered by small, state-owned airports to low cost carriers the EC will issue not just their findings on the issue of state aid, but a set of guidelines for this sector for the future.
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