AIR FRANCE COMPLAINS TO EU AGAINST RYANAIR

Tert.am
16:09 ~U 12.03.10

Air France-KLM (AF.FR) has filed a complaint with the European
Commission over alleged illegal state aid received by Ireland-based
low-cost airline Ryanair (RYA.DB), the company said Thursday, reports
The Wall Street Journal.

The complaint which was lodged with the commission, Europe’s highest
antitrust authority in November 2009, concentrates on financial
aid Ryanair "receives from French regional and local airports,"
the airline said in a statement.

Ryanair’s agreement to serve regional French airports is conditional
on the airport authorities’ financially aiding the operations in the
form of reduced airport taxes, preferential ground handling rates at
certain airports or marketing aid.

Air France alleges these measures are contrary to European laws on
giving regional aid as they are not temporary nor do they decrease
over time. "On the contrary, they are considered to be permanent,"
the company said.

Ryanair spokesperson Stephen McNamara said the filing was a "another
waste of time from Air France, which was last year found by the
commission to have received illegal state aid."

McNamara pointed out that Ryanair hasn’t yet been found guilty of
receiving illegal state aid once, while Air France was in 2009 ruled
to have exclusively benefited from reduced airport charges on domestic
routes in France.

According to the European Commission’s guidelines on giving aid to
regional airports, the aid must be linked to the start of activity at
the airport such as covering installation costs, said the commission’s
competition spokesperson Amelia Torres. Any possible aid must also
be progressively reduced and limited in time, she added.