Dusseldorf airport must pay more than 20 million deutschmarks (£8 million) compensation to four insurance companies who paid damage claims after a major airport fire in April 1996, a court has ruled. The airport is now part-owned by Aer Rianta.

The Dusseldorf court said the airport was guilty of "gross negligence" in covering its ceilings with flammable polystyrene tiles which were set alight by stray sparks from welding work, causing the blaze that killed 17 people.

A spokesman for Aer Rianta said last night that the claims had been taken into consideration when tenders for the airport had been submitted. Last month, Aer Rianta paid £35 million for its share of a 50 per cent stake in Dusseldorf, one of Europe's busiest airports.

A welding firm contracted by the airport was also ordered to pay five million deutschmarks in compensation, after the court ruled that the welding work was definitely the source of the fire.

The four insurers - Nurnberger, Iduna, Securitas Bremer and Deutscher Lloyd - brought their action in October after paying out damage claims to retailers and restaurants operating in the airport.

The Aer Rianta spokesman said provision for the claims had already been made.

Meanwhile, Aer Rianta has ruled itself out as a contender for Luton Airport. A spokesman said the company had made preliminary enquiries about Luton some months ago, but was now definitely not interested.

The company is seeking a new chief executive as its current chief executive, Mr Derek Keogh, is due to retire at the end of December. A board meeting is due to take place today, but it is thought unlikely a successor will be announced after the meeting.