Ryanair loses battle against Brussels Airlines state aid

The €19.7 million paid by the federal government to Brussels Airlines, Jetairfly (now known as TUI Airlines) and Thomas Cook does not constitute illegal state aid, the commercial court in Brussels has ruled, rejecting a complaint brought by Ryanair. 

The subsidy was intended, according to the government, to compensate the three airlines for the cost of using Brussels Airport and was restricted to those airlines established in Belgium, carrying more than 400,000 passengers a year and paying social security here. Ryanair now also operates out of Zaventem, but is incorporated in Ireland; it pays social security at the lower Irish rate.

Under the arrangement, the three airlines are exempted from paying Brussels Airport’s security tax. Ryanair complained that the subsidy constituted a state aid to industry, which is illegal under EU rules (except under very strict conditions). Ryanair also has an action under way before the Council of State and an investigation pending with the European Commission.

In a statement issued after the decision, the company said the Brussels court’s ruling would have no effect on the European investigation. If the EU should find the state aid to be illegal, Ryanair will take steps to obtain damages, it said.

Photo courtesy Ryanair