- The Assessment deems the action to be in alignment with the market unity.
Ryanair is challenging a EU Commission ruling that requires the airline to return €13-€14 million in subsidies. The airline stated, "We will challenge the EU Court's assertion that certain old marketing service contracts, wherein Ryanair was involved, constitute state aid." The Interior Ministry in Mainz also reacted to the decision.
The dispute revolves around Frankfurt-Hahn Airport in Rhineland-Palatinate.
As per the EU Commission, both Ryanair and Frankfurt-Hahn Airport are required to repay about €15 million in subsidies due to market distortion. Interest will also be charged. Support decisions were made between 2005 and 2017. This includes instances like Rhineland-Palatinate providing the airport with land without compensation. Ryanair benefited from marketing agreements and training aid. The refund is aimed at restoring fair competition.
EU decision does not concern the airport operator
An airport spokesperson, who referred to the airport as Triwo Hahn Airport since last year, commented that they were not the intended recipient of the EU decision. "We are not the legal successor," they emphasized. The airport filed for bankruptcy in the fall of 2021 and is currently operated by Triwo Hahn Airport GmbH.
The former bankruptcy administrator of Frankfurt-Hahn Airport GmbH admitted that the reasons for the EU Commission's decision were unavailable. "Additionally, it's uncertain whether and to what extent legal remedies against the decision have been pursued." The matter is under review by the bankruptcy administration.
Rhineland-Palatinate reviews next steps
According to the Interior Ministry in Rhineland-Palatinate, the EU Commission has examined numerous individual measures since initiating the first procedure in 2008. All measures were previously considered compliant with state aid law, but now three measures are considered to be in violation of state aid law. "After assessing the reasons, the appropriate actions will be taken with the lawyers representing the state in state aid proceedings." Rhineland-Palatinate sold its 82.5% stake in the Hunsrück airport in 2017.
In the EU, strict rules apply if a state wishes to financially support local companies. This is to prevent, for instance, financially powerful countries like Germany from granting their companies an unfair advantage and thus eliminating competition.
- The EU Commission's decision to require Ryanair and Frankfurt-Hahn Airport to repay subsidies is an example of the European Union's efforts to maintain fair competition within the Union.
- The dispute between Ryanair and the EU Commission over state aid at Frankfurt-Hahn Airport is yet another instance of the European Union enforcing its strict rules against state aid to prevent unfair competition.
