Belgium's Walloon regional government is expected to appeal the EU Commission ruling that subsidies to Ryanair are against competition laws.
Walloon Economics Minister Mr Serge Kubla
The European Commission today ruled the airline must repay €4.5 million in concessions received from the airport over landing fees, ground handling charges and marketing aid.
"More than likely, if the decision blames us for things I cannot accept, then I will ask the Walloon government to appeal, because I believe we acted in good faith," Walloon Economics Minister Mr Serge Kubla said. The Walloon regional government controls Charleroi airport.
Responding to the ruling Ryanair chief Mr Michael O'Leary said the ruling undermined his competitive edge and will force up fares.
But the Commission insisted that it had taken a major "decision of significance" for the future of air transport by ensuring full competition between carriers using regional airports.
"The Commission is committing itself firmly to promoting increased
competition which will enable low-cost carriers to establish themselves throughout the EU, subject to compliance with uniform rules on competition between carriers and for the maximum benefit of consumers," said Transport Commissioner, Ms Loyola De Palacio.
"This legal decision is well-balanced - it brings greater transparency into contractual relations between airlines and airports, especially regional airports.
"It will also help the development of low-cost operations, which are very clearly what consumers want, whilst also ensuring equitable conditions of competition for all airlines. All players in the same arena must be able to play by the same ground rules.
"All airlines must be aware of the possibilities offered, and only genuine competition is truly capable of safeguarding consumers' rights," she explained.
Today's decision gives the go-ahead for Ryanair to benefit from forms of aid granted by the Belgian regional government which "permits genuine development of new routes under clearly defined conditions".
But other direct aid, designed as an incentive to Ryanair to operate in to and out of Charleroi, is outlawed.
Ryanair has been operating services from London to Charlesroi since 1997, but reached a new comprehensive deal in 2001. Under its terms, Ryanair alone was given a 50% reduction in landing taxes and only had to pay a one euro landing charge per person carried. The normal rate is up to 13 euros.