Walloon regional government likely to appeal finding

The Walloon regional government is likely to mount a legal challenge to the European Commission's decision, the economy minister…

The Walloon regional government is likely to mount a legal challenge to the European Commission's decision, the economy minister, Mr Serge Kubla, said yesterday.

The minister said he did not believe that any illegal state aid had been given to Ryanair, but a decision to appeal would have to be taken jointly with his ministerial colleagues.

"My recommendation goes in the same direction as Ryanair's. We will discuss the need to make an appeal. Some of the accusations by the commission are particularly unjustified," he said.

Mr Kubla said he would be asking Ryanair to open new negotiations on charges. "I do not want them to reduce their activities in Charleroi," he said.

READ MORE

He said the offers made by the airport to Ryanair had been open to dozens of other airlines but only Ryanair had shown real interest in using Charleroi.

The airport was considering reducing all its landing charges to the discounted level currently offered Ryanair so that it could not be accused of discrimination.

Asked whether he regretted not asking the Commission for prior approval of the agreement with Ryanair, Mr Kubla said: "We acted in good faith. We didn't think it was necessary."

Those familiar with the deal said that the speed with which Ryanair wanted to launch Charleroi as its continental hub in April 2001 precluded the possibility of an official notification of the aid. "We would have lost the deal," said one source.

Walloon officials said that the commission's transport department had been unbudging throughout the investigation.

Only when the dossier was circulated to other commissioners in the last week had there been any concessions made, the source said.

Up to now the European Commission has been negotiating on the case with the Walloon government, provider of the alleged state aid, and not Ryanair, which as the recipient of the aid has no right of audience.

Mr O'Leary, the airline's chief executive, said that at the appeal stage Ryanair would have the chance to present its case directly.

A Walloon government official remarked that Ryanair had been heavily involved in the case up to now. "More than is usual," he added.