A French court today ruled as illegal the financial aid granted to Ryanair by a local chamber of commerce to help establish a service between Strasbourg and London.
The Bas-Rhin Chamber of Commerce and Industry, which manages the Strasbourg airport, in June 2002 promised to give Ryanair €1.4 million to set up two daily round-trip flights between London Stansted and the capital of the Alsace region in eastern France.
Brit Air, a subsidiary of French national carrier Air France, was forced to cancel its London-Strasbourg link in the face of competition and launched an appeal, arguing that the aid distorted competition.
Today's judgment contradicts the conclusions of a government commissioner, who in June said that the money was paying to promote Strasbourg and the surrounding region, which is not on the country's main air and train routes.
The Ryanair route opened in late October 2002, and the carrier had said it planned to ferry over 200,000 passengers between London and Strasbourg in the first year.