Ryanair Holdings PLC
14 November 2007
RYANAIR SUES EUROPEAN COMMISSION FOR ITS FAILURE TO INVESTIGATE ILLEGAL STATE
AID TO LUFTHANSA AT MUNICH AIRPORT
Ryanair, Europe's largest low fares airline, today (Wednesday, 14th November
2007) lodged a case in the European Court of First Instance against the European
Commission's failure to act on Ryanair's complaint regarding illegal State aid
granted by the German authorities to Lufthansa at Terminal 2 in Munich Airport.
The Commission has ignored Ryanair's calls for an investigation of this obvious
abuse of the EU State aid rules for over two years.
Announcing the launch of these proceedings, Michael O'Leary, Ryanair's CEO,
said:
'Lufthansa / Star Alliance have exclusive use of Terminal 2 in Munich, which was
provided at a cost of €1.5 billion (over €1 billion paid by the German
Government and the Regional Authorities), and which has led to the airport
incurring losses of over €100 million in 2004-2005. No private investor would
have invested in the loss making facility and then granted exclusive access to
just one airline. Lufthansa is therefore receiving substantial State aid at
Munich airport, which distorts competition in the European air transport market.
'We have called on the European Commission to investigate these serious
distortions of competition in favour of Lufthansa at Munich. Munich Airport's
refusal to allow Ryanair to use this facility has subjected passengers in
Bavaria to the stranglehold of Lufthansa's high fares and fuel surcharges while
Lufthansa has unfairly benefited from substantial amounts of State aid.
'Ryanair has been left with no alternative but to challenge the Commission's
inaction in the European courts. We are calling on the Commission to start
promoting competition and to stop protecting flag carrier high fare airlines
which continue to receive large amounts of unlawful State aid.'
Ends. Wednesday, 14th November 2007
For information:
Peter Sherrard - Ryanair Pauline McAlester - Murray Consultants
Tel: 00 353 1 812 1228 Tel: 00 353 1 4980 300
This information is provided by RNS
The company news service from the London Stock Exchange
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