Ryanair fails to stay Belgian case

The High Court has refused an application by Ryanair to stay proceedings brought against it by the Kingdom of Belgium for the recovery of more than €2.28 million provided by the Belgian authorities to the private airline for services to and from Charleroi airport.

The Belgian move follows a decision by the European Commission in February 2004 that many of the financial arrangements agreed between Ryanair and Belgium's Walloon constituted state aid incompatible with the common market.

Ryanair yesterday lost a High Court bid to put a stay on the proceedings by Belgium pending the determination of Ryanair's appeal against the European Commission decision.

The Ryanair appeal is currently before the Court of First Instance of European Communities.

The €2.28 million state aid relates to the launching costs of new routes, accommodation and subsistence for Ryanair staff and associated companies during the development of the base at Charleroi, and aid for the recruitment and training of pilots and aircraft staff.

Refusing the application for a stay in the proceedings, Mr Justice Iarfhlaith O'Neill said it was quite clear that Ryanair had put forward no evidence which came close to satisfying the test for its contention that it would suffer irreparable harm if a stay was not granted.

The judge said a letter of October 25th, 2005 before the court candidly acknowledged that the only harm apprehended was pure financial loss which, he said, was well within the airline's capacity to bear.

The European Commission's decision has to be regarded by the Irish courts as having the force of law unless and until it is annulled, and its validity cannot be questioned in these proceedings.

Counsel for Ryanair had claimed before the High Court that if the proceedings by Belgium were stayed now, the cost to the public purse would be limited. This was not a case where Ryanair had run away and the airline had an interest in testing the commission's decision, he said.

Money had been paid into an account by Ryanair and, if the airline did not succeed in Europe, the money would go to Belgium, it was also submitted.