Ryanair Holdings PLC
11 May 2006
Ryanair Launches €1 Billion in State Aid Complaint
Against Air France
Ryanair, Europe's largest low fares airline, today (Thursday, 11th May 2006)
announced that it had launched a complaint to the European Commission against
Air France regarding approximately €1 billion in illegal state aid that Air
France has received from the French Government over the past number of years.
The French Government has maintained an airport charging system whereby landing
and passenger charges for domestic routes are often up to 50% lower than on
routes between France and other EU Member States. This is illegal under European
law and the European Commission has sued other Governments for similar
differentiated charging.
As a result of this unfair price advantage Air France has received almost a €1
billion in illegal state aid, which has furthered their dominance in the French
market and has placed competitors like Ryanair at a serious competitive
disadvantage. Ryanair have therefore called on the European Commission to
require the French Government to regularise their charging system and to force
Air France to repay this illegal state aid.
Announcing the complaint against Air France, Ryanair's Head of Regulatory
Affairs, Jim Callaghan, said:
'Air France has a rampant monopoly in the French market and this
dominance has been enhanced by the illegal airport charging system that
has been maintained in France, despite rulings by the European
Commission in other EU member states. These substantially lower charges
on domestic French routes, on which Air France has an almost complete
monopoly, have allowed them to make super profits on domestic routes and
to cross subsidise their international routes, on which they compete
with airlines like Ryanair. As a result, France is the only major EU
country that does not have a significant low fares airline presence.
'For far too long, the French Government have been protecting Air France
from competition and this is the most blatant example. Ryanair are now
asking the European Commission to take urgent action against the French
Government and to force Air France to repay this illegal state aid in
order to remove the distortion of competition in the French market'.
Ends. Thursday, 11th May 2006
For further information:
Peter Sherrard - Ryanair Pauline McAlester - Murray Consultants
Tel: 00 353 1 812 1228 Tel: 00 353 1 4980 300
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