- State Funding Reimbursement Appeal: Ryanair Makes Announcement
Ryanair has declared its intent to challenge a EU Commission ruling that necessitates the airline to refund €13-€14 million in subsidies. "We'll challenge the EU Court over the Commission's claim that certain outdated marketing service contracts involving Ryanair were considered subsidies," the company stated. This dispute concerns Frankfurt-Hahn Airport located in Rhineland-Palatinate.
Based on EU Commission findings, Ryanair and "Frankfurt-Hahn Airport" are required to refund around €15 million in subsidies due to market distortion. Interest also applies to this refund. Support agreements were inked between 2005 and 2017, during which Rhineland-Palatinate handed out land to the airport without any compensation. Ryanair gained advantage from marketing deals and training aid. The returned funds are expected to reinstate market fairness.
EU ruling not targeted at the airport administration
An airport spokesperson, who changed the airport's name to Triwo Hahn Airport last year, stated, "We're not the intended recipient of the EU ruling. We're not the legitimate heir." The airport declared bankruptcy in autumn 2021 and is now managed by the Triwo Hahn Airport GmbH company.
The former insolvency administrator of Frankfurt-Hahn Airport GmbH mentioned, "The reasons behind the EU Commission's decision remain unavailable. Moreover, it's uncertain if and how potential legal challenges against this decision exist or have been filed." The situation remains under review by the insolvency administration's legal team.
The EU has stringent policies in place when a nation considers financially supporting domestic businesses. This is designed to prevent, for instance, wealthier nations like Germany from granting their companies undue advantages, consequently overshadowing competition.
Ryanair is planning to seek reimbursement for the €13-€14 million they're required to refund due to the EU Commission's ruling, as they dispute the claim that certain marketing service contracts were considered subsidies.
Upon compliance with the EU Commission's ruling, Ryanair and Frankfurt-Hahn Airport will need to provide a reimbursement of around €15 million, including interest, as a result of market distortion caused by support agreements from 2005 to 2017.
