No-frills airline Ryanairsaid today it was confident European Union authoritieswould find it had not received unfair state aid to help it setup operations in Belgium last year.
The European Commission, the EU's executive arm which canforce companies to pay back aid it judges illegal, launched aformal probe last month into alleged aid the airline receivedfrom state-owned Charleroi airport when it opened a hub.
"This case will provide the EU Commission the opportunity toestablish a clear aviation policy which will promote competitionto high cost monopoly airports (and) high fare incumbentairlines," Ryanair said in a statement.
It said it was the victim of a strategy by traditionalairlines and airports to undermine the new generation low-faresairlines.
But in its Official Journal of Saturday, the Commission saidit had many reasons to consider Ryanair had received unfairlyfavourable treatment from Charleroi airport, which is owned bythe government of Belgium's French-speaking region, Wallonia.
In return for promising to run at least a minimum number offlights from Charleroi for 15 years, the Wallonian governmentand state-owned airport authority gave the airline benefits.
The Commission said that these included a 50 per centdiscount on published landing fees, promises to compensate theairline for any losses in the next 15 years due to changes inairport taxes or airport opening hours, and cash to help withthe expenses of setting up the hub.
It also pledged 250,000 € for hotel andsubsistence, €160,000 for each new route opened up to amaximum of €1.92 million, €768,000 to help withtraining costs, and help with marketing and financingpromotional fares.
"These measures are specific, they are granted using stateresources, they are liable to distort competition andintra-Community trade, and they constitute state aid," theCommission said in the Journal, the EU's gazette of record.
Interested parties have one month to submit comments to theCommission after which it will consider its ruling.
Ryaniair said it expected flag carriers such as BritishAirways, Lufthansa, SAS and Alitalia to support the complaintagainst it. The complaint was originally submitted by Belgium'smain airport Brussels International. .