O'Leary denies Ryanair received 'unfair aid'

Ryanair Chief Executive Mr Michael O'Leary today denied the airline had ever received unfair aid from Belgium's Charleroi airport…

Ryanair Chief Executive Mr Michael O'Leary today denied the airline had ever received unfair aid from Belgium's Charleroi airport or from the government for the region.

Mr O'Leary was speaking in the wake of reports that the European Commission is to launch an investigation into subsidies enjoyed by Ryanair at its Belgian hub.

The Commission's transport directorate is understood to be following up an informal inquiry into subsidies used by Brussels South Charleroi Airport to attract business.

Speaking on RTE radio this morning, Mr O'Leary said the investigation would have no impact on the airline and denied receiving any aid.

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"Firstly it will have no impact on Ryanair, secondly we welcome it," he said.

"Ryanair have no concern about any formal or informalinquiries made by the EC into our successful operations at Charleroi.

"The general terms of our cost base at Charleroi airport are well known andare available to any other airline who chooses to fly there on a similar basisas Ryanair.

"The arrangements at Brussels Charleroi airport are competitive,non-discriminatory and available to all and we have no doubt that the commissionwill support Ryanair's ongoing campaign to lower the otherwise ridiculous costof air travel all over Europe."

Ryanair benefited from rates at the airport which were available to other carriers using the facilities, and was not paid any money by the airport, he added.

The decision, to be made by EU Commissioners at a meeting later today, is part of a package of measures to ensure airlines in the 15-country bloc compete on equal terms.

EU state aid inquiries can lead to firms being forced to pay back money if the Commission rules it received unfair aid.

The Commission said last December it had started a preliminary investigation into Ryanair's relationship with Charleroi.

The investigation would look at whether Ryanair received unfairly discounted landing fees from Wallonia, the government of Belgium's French-speaking southern region.

It would also probe the conditions set by the airport operator, Brussels South Charleroi Airport, such as handling fees and a joint marketing venture with Ryanair.

The airport is one of two European hubs operated by Ryanair. The other is at Frankfurt-Hahn. A third near Milan will open next February.

Additional reporting by Reuters

Eoin Burke-Kennedy

Eoin Burke-Kennedy

Eoin Burke-Kennedy is Economics Correspondent of The Irish Times