News: Ryanair complains to Euro chiefs
Flights > News > # 776 (11/05/2006)
Ryanair has launched an official complaint to the European Commission against Air France regarding an alleged €1 billion in illegal state aid they claim Air France has received from the French Government in recent years.
The French Government has maintained an airport charging system whereby landing and passenger charges for domestic routes are often up to 50% lower than on routes between France and other EU Member States.
Ryanair say this has resulted in Air France having a competitive advantage over potential rivals because they have a virtual monopoly on domestic routes and can then pile cash into subsidising their international routes.
The Irish airline are calling on the European Commission to force the French Government to regularise their charging system and to force Air France to repay an extra profits they have made from their “state aid”.
Ryanair’s legal expert, Jim Callaghan, said: “Air France has a rampant monopoly in the French market and this dominance has been enhanced by the illegal airport charging system that has been maintained in France, despite rulings by the European Commission in other EU member states. As a result, France is the only major EU country that does not have a significant low fares airline presence.”
He added: “For far too long, the French Government have been protecting Air France from competition and this is the most blatant example.”
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