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Updated at 2.00pm
RYANAIR HAS BEEN hit with its second illegal state-aid bill in two weeks after it was ordered to repay €300,000 to Germany.
The European Commission ordered the money be returned over Ryanair’s setup at the Alternburg-Nobitz regional airport about 42km south of the city of Leipzig.
But the airline has vowed to fight any negative findings about its agreements which it denied fell outside EU rules.
In a statement today the commission said “certain service and marketing agreements” between the Alternburg-Nobitz airport manager, Ryanair and its marketing offshoot AMS gave the Irish carrier an unfair advantage to the tune of around €300,000.
Ryanair had been the only airline operating scheduled flights out of the airport between 2003 and 2011, when it stopped using the hub.
While the commission gave its tick of approval to most of the airline’s arrangements with the airport manager, it said Ryanair’s 2010 marketing deal “could not have been reasonably expected to improve the financial situation of the airport” which meant it amounted to illegal state aid.
It said the contracts had no chance of returning a profit for the airport even in the long term and they gave the airline an unfair economic advantage.
Deja vu, all over again
The latest ruling follows another European Commission decision earlier this month when Ryanair was told to pay back €500,000 to Germany for its contract at the Zweibrücken Airport.
The airline was cleared over its arrangements at four other airports, but the commission said its Zweibrücken contracts amounted to illegal state aid.
Ryanair said it planned to appeal both decisions, even though the repayments represent a drop in the ocean for the world’s busiest budget carrier.
“All of Ryanair’s airport arrangements comply with the EU State aid rules and Ryanair has therefore instructed its lawyers to appeal this ruling to the extent it alleges otherwise,” a spokeswoman said.
The company recently announced it expected its year-end profits to reach up to €650 million.
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I love it. While the Germans were making us bail out their banks and bondholders, the bauld Mick was ripping them off. Maith an fear.
He pulled down their Lederhosen.
Justin, what did you do there?
Brilliant, Denis.
I like how we’ve crawled so far up the beanstalk of dillusion that Anglo-Irish and its Irish board of directors can be considered German… I’d like to think that was sarcastic for the sake of human intelligence, but deep down I know it’s not. A significant portion of the Irish people really have smashed their heads against a proverbial rock until they’ve convinced themselves that Angela Merkel is Sean Quinn in drag… Maith na morons a chara.
Keeps Ryanair in the news. They will get more than €300,000 worth of airtime.
It’s all good!
No better man to get the best deals
He gets contributions from EU anyway
He laughing all the way to the bank
I bet his money is not in any European banks That’s for sure
How about you write the headline without the Daily Mail style capitalisng words to slant a story.
Colin Farrell looks off to the left in many movie posters. Bruce Willis has a fondness for the top right for some reason.
It’s not the German government, it’s a local authority.
Difference being?
Federal government, federal taxes. City government, city taxes. The government of Ireland v Wexford county council.
Ok so.
Side note – i reckon Wexford CC would beat Gov of IRL 10-0 in any game.
keep ripping off ze Germans I say, while they do with banks what they can no longer do with tanks. !
That’s not Michael O.
have your say