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03/02/2004
EU Blow to Low Cost Airline Passengers

The European Commission has today ruled that discounts Ryanair obtained from the Belgian authorities to use Brussels Charleroi airport were illegal.

Ryanair will be forced to pay back around £3 million following today's announcement by Commissioner De Palacio. According to Ryanair, this could affect its whole strategy which targets small regional airports where landing and handling fees are discounted.

This decision will affect over 2 million passengers who use Charleroi airport every year and will have an impact on other airports throughout the EU which are used by low cost airlines. Only last year, Ryanair was forced to pull out of Strasbourg after a court ruled against the use of lower fees for low cost airlines.

Regional airports outside the private sector, such as Newquay in Cornwall, which have seen an increase in visitors and investment through low cost airlines, will now feel the knock-on effects of the Commission's decision.

Jonathan Evans MEP, Leader of the British Conservatives in the European Parliament, said: "This is a disaster for passengers. The Commission's decision will drive up fares for consumers by forcing the low fares airlines to pay higher costs. This cannot be in the interest of consumers. It is a green light for the expensive national flag carriers to hike up their fares further still.

The existence of low cost airlines in Europe is vital for providing consumer choice, competition and cheaper travel. If low cost airlines pull out of small regional airports, local economies and tourism will suffer as a result. Around 70 million EU citizens travel on low cost airlines ever year. This decision will limit their choice of routes and carriers.

The French court ruling against Ryanair last year over subsidies at Strasbourg airport has now left many travellers with no choice but to pay over £290 for a one way flight with a national flag carrier instead of around £70 previously with Ryanair."

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