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Michael O'Leary, Ryanair chief executive, threatened yesterday to pull the airline's services out of both Charleroi, its Belgian operating base, and Strasbourg if the European Commission and a French appeal court rule against its deals with the airports. ...
The Charleroi case is the more important, as the airport - which is near Brussels and Lille - is significant for the Ryanair network and the case could have implications for some of the group's other airport deals. Charleroi was the airline's first operating base in continental Europe. Ryanair flies to 11 destinations from it. The Commission launched a formal investigation into Ryanair's financial relationship with both Charleroi airport and the regional government of Wallonia in December last year and is expected to report its findings in the autumn. It is investigating what it claims could be illegal state subsidies such as reduced landing charges and financial support for training, recruitment, marketing and subsistence for Ryanair staff.
Mr O'Leary said his confidence that the Commission would rule in Ryanair's favour had been undermined when a French court ruled last week that financial aid granted by the regional chamber of commerce to help establish a service between Strasbourg and London's Stansted airport was illegal. ...
Mr O'Leary said Ryanair would shut down its operations at Charleroi and would withdraw from Strasbourg rather than increase its fares as a result of losing the cases. Aircraft would be moved to other airports and the airline did not face any penalty clauses in its airport agreements. "We are not going to make it easy for any bureaucrats."
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