The European Union has ordered France to recover €1.8 million from Ryanair, following a probe that found the low-cost airline had received incompatible state aid from the entity managing Carcassonne airport. The investigation, launched by the European Commission in 2012, examined 11 contracts between Ryanair and the Chamber of Commerce and Industry of Carcassonne-Limoux-Castelnaudary, the airport’s former manager. The commission discovered that these contracts conferred an advantage on Ryanair, as the airport’s manager paid higher marketing fees to the airline while reducing passenger charges.
The probe revealed that the profitability of the contracts evolved to benefit Ryanair, resulting in an total advantage of €1.8 million. The European Commission has concluded that France must now recover the incompatible aid, plus interest. This decision is in line with the EU’s state aid rules, which aim to ensure fair competition among airlines. The commission’s ruling is a significant development in the ongoing efforts to regulate state aid in the aviation industry.
The case against Ryanair began in 2012, when the European Commission launched an investigation into the airline’s agreements with the Carcassonne airport manager. The commission’s antitrust watchdog sought to determine whether these agreements complied with EU state aid rules. The investigation has been ongoing for several years, with the commission carefully examining the contracts and their impact on the airline.
The European Commission’s decision to order France to recover the incompatible aid is a significant step in enforcing EU state aid rules. The ruling reinforces the importance of fair competition in the aviation industry and ensures that airlines do not receive unfair advantages through state aid. The recovery of the €1.8 million, plus interest, will help to level the playing field for other airlines operating in the region.
The EU’s state aid rules are designed to prevent governments from providing unfair advantages to certain companies, including airlines. The rules aim to promote fair competition and ensure that companies compete on a level playing field. The European Commission’s decision in the Ryanair case demonstrates its commitment to enforcing these rules and maintaining a fair and competitive aviation industry.
