News: EU probe investigates Ryanair deal with Pau airport

Flights > News > # 1601 (29/11/2007)

The European Commission has launched a state aid probe into the use of Pau airport in southwestern France by budget airline Ryanair.
The Commission said it would in particular examine a contract with the Pau-Bearn Chamber of Commerce, which operates the airport, that sets out the conditions for Ryanair's use of the transport facility.
The European Union's executive arm would also investigate a contract between the Chamber of Commerce and Ryanair subsidiary Airport Marketing Services for promoting the Pau route.
"The two contracts appear to effectively function as one agreement and the financing by (the Chamber of Commerce) may constitute start-up aid for the low-cost airline," the Commission said.
"Furthermore, the information available to the Commission does not allow it to conclude that such financing is in line with (EU) rules on start-up aids," it added.
Ryanair opened a route between London's Stansted airport and Pau in April 2003.
The European Commission is responsible for making sure that state aid in Europe does not give companies unfair advantages over competitors.

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