Ryanair rules out repaying subsidies

Ryanair has said it will dismiss any request for repayment of incentives related to its operations at Belgium's Charleroi airport.

The company was responding to reports from Belgium yesterday that a letter requesting repayment of €4 million would be sent to the airline "immediately".

The European Commission last February ordered the Irish airline to repay "illegal subsidies" agreed with the Walloon government under a 15-year deal for operations at Charleroi signed in 2001.

Ryanair immediately announced its intention to appeal what it called a "flawed decision" to the European Court of Justice.

In May, Ryanair chief executive Mr Michael O'Leary told the Financial Times that a demand from the Belgian authorities for repayment of €3 million had received a curt response.

A spokeswoman for Ryanair said that the airline's position had not changed.

"Ryanair has consulted with the Walloon government and what the airline has paid far exceeds any money received. Therefore, no monies are due," she said.

The latest controversy follows an interview by Mr Laurent Jossart, the head of Charleroi airport, with a Belgian newspaper. He said the Commission had granted the Wallonia region an extension until September 15th before it had to start recovering the funds.