RYANAIR SUES - ILLEGAL STATE AID TO LUFTHANSA

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Ryanair News--------------------------------------------------------------------------------

News Release
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14.11.07
RYANAIR SUES EUROPEAN COMMISSION FOR ITS FAILURE TO INVESTIGATE ILLEGAL STATE AID TO LUFTHANSA AT MUNICH AIRPORT

Ryanair, Europe’s largest low fares airline, today (14th Nov) lodged a case in the European Court of First Instance against the European Commission’s failure to act on Ryanair’s complaint regarding illegal State aid granted by the German authorities to Lufthansa at Terminal 2 in Munich Airport. The Commission has ignored Ryanair’s calls for an investigation of this obvious abuse of the EU State aid rules for over two years.

Announcing the launch of these proceedings, Michael O’Leary, Ryanair’s CEO, said:

“Lufthansa / Star Alliance have exclusive use of Terminal 2 in Munich, which was provided at a cost of €1.5 billion (over €1 billion paid by the German Government and the Regional Authorities), and which has led to the airport incurring losses of over €100 million in 2004-2005. No private investor would have invested in the loss making facility and then granted exclusive access to just one airline. Lufthansa is therefore receiving substantial State aid at Munich airport, which distorts competition in the European air transport market.

“We have called on the European Commission to investigate these serious distortions of competition in favour of Lufthansa at Munich. Munich Airport’s refusal to allow Ryanair to use this facility has subjected passengers in Bavaria to the stranglehold of Lufthansa’s high fares and fuel surcharges while Lufthansa has unfairly benefited from substantial amounts of State aid.

“Ryanair has been left with no alternative but to challenge the Commission’s inaction in the European courts. We are calling on the Commission to start promoting competition and to stop protecting flag carrier high fare airlines which continue to receive large amounts of unlawful State aid.”