EU begins inquiry into Ryanair contracts with French airport

EU COMPETITION commissioner Joaquín Almunia has begun an in-depth, state-aid examination into some of Ryanair’s arrangements with Beauvais airport, near Paris.

The investigation comes as the European Commission examines a range of agreements between the airline and other European airports.

At issue in the Beauvais investigation is €24 million in public support measures for the airport operator to make infrastructure investments.

In a statement, Mr Almunia expressed concern that the arrangements made for certain airlines, which he did not name, “have been carried out of market conditions”. He said such arrangements could give airlines an “undue economic advantage” that their competitors do not enjoy.

The commissioner’s spokesman said Ryanair features in the investigation.

“I confirm that the investigation covers arrangements involving Ryanair, ie rebates and marketing agreements concluded between the airport and the company,” he said.

“This probe is part of a wider set of investigations into public support granted to various airports – mostly regional airports – and airlines operating in these airports. We are dealing with all these cases in parallel as they raise issues which are both complex and similar, and we will address them in a consistent way. Our objective is to conclude most of these investigations towards the end of 2012.”

Ryanair’s arrangements with six German terminals are under scrutiny in the wider investigation.

In addition to Beauvais, deals in a further six French airports are under examination.

Also in the frame are its contracts with another six airports in Austria, Belgium, Denmark, Sweden, Italy and Finland.

Ryanair’s head of communications Stephen McNamara insisted yesterday that the airline’s agreements with the various European airports comply with EU regulations.

“The European courts in December 2008 dismissed similar commission claims against Ryanair when it found, in the Charleroi [Belgium] case, that Ryanair’s airport agreements complied with EU competition rules,” Mr McNamara said. “The commission didn’t even appeal this court ruling. Ryanair’s arrangements with all EU airports comply with competition rules.”