Decision a 'disaster for consumers' - O'Leary

Ryanair chief executive Mr Michael O'Leary has described this morning's European Commission decision on subsidies at its hub at Charleroi Airport as a "disaster for consumers" and confirmed the airline's intention to appeal.

Ryanair was ordered to repay around €4.5 million in subsidies after the European Commission said the reduced rates offered exclusively to Ryanair for using the airport in southern Belgium were illegal.

Speaking at Charleroi this afternoon, an angry Mr O'Leary welcomed the publication of the decision "as it now means that the industry can at least focus on the issues instead of rumours and leaks from the Commission."

He described the move as an "attack on all low-fare airlines" and a "disaster for consumers". He confirmed that it would lead to the price of flights from the hub to increase and said the airline would appeal it to the European Court.

He said the decision confirmed the European Commission intended to increase costs and air fares for consumers and said it "should not interfere in the operation of a free market.

"It is impossible to envisage the Commission limiting the discounts or marketing support that Tesco, Carrefour, Aldi or Lidl negotiate in order to lower prices for consumers," he said. "It is impossible to envisage the Commission preventing McDonald's negotiating discounts from its suppliers in order to lower the cost of its meals to consumers.

"We believe the appeal [to the European Court] will be supported by many other low-fares airlines, regional airports and consumer groups,"  Mr O'Leary said.

He described it as "regrettable" that the Commission was "placing the complaints of high-cost airports and high-fares airlines above the interests of ordinary consumers who want lower fares" and said  the decision was "anti-competitive" and "anti-consumer"

Mr O'Leary said the beneficiaries of the decision "is the original complainant, Brussels Zaventem Airport, and the high fare carriers who fly there. They will now face reduced competition, and higher fares at Brussels Charleroi, thanks to the failure of the EU Commission to promote competition, lower fares and consumer interests".

This morning, Belgium's Walloon regional government, who offered the subsidies,  announced it was also considering an appeal against the ruling.