Close Menu
    Latest Category
    • Finance
    • Tech
    • EU Law
    • Energy
    • About
    • Contact
    EUbusiness.com | EU news, business and politicsEUbusiness.com | EU news, business and politics
    Login
    • EU News
    • Focus
    • Guides
    • Press
    • Jobs
    • Events
    • Directory
    EUbusiness.com | EU news, business and politicsEUbusiness.com | EU news, business and politics
    Home » Ryanair has to return EUR 8.5m illegal state aid: EU

    Ryanair has to return EUR 8.5m illegal state aid: EU

    npsBy nps8 August 2019Updated:25 June 2024 No Comments3 Mins Read
    — Filed under: airlines Competition EU News Headline1
    Share
    Facebook Twitter LinkedIn Pinterest Email
    Ryanair has to return EUR 8.5m illegal state aid: EU

    Ryanair – Photo Curren

    (BRUSSELS) – France must recover EUR 8.5 million of illegal state aid made to Ryanair, the EU Commission said Friday, as regional marketing agreements at the airport of Montpellier are illegal under EU state aid rules.

    The Commission’s investigation showed certain payments by the French local authorities in favour of Ryanair to promote Montpellier airport gave Ryanair “an unfair and selective advantage over its competitors and caused harm to other regions and other regional airports,” according to Competition Commissioner Margrethe Vestager: “This is illegal under EU State aid rules. France must now recover the illegal State aid.”

    Montpellier airport is a regional airport located in the French region of Occitanie. The airport served nearly 1.9 million passengers in 2018. Ryanair was present at the airport until April 2019.

    Following a complaint by one of Ryanair’s competitors, the Commission opened in July 2018 an in-depth investigation into marketing agreements between the Association for the Promotion of Touristic and Economic Flows (Association de Promotion des Flux Touristiques et Economiques, “APFTE”) and Ryanair and its subsidiary AMS.

    Between 2010 and 2017, APFTE concluded various marketing agreements with Ryanair and AMS, under which the airline and its subsidiary received payments worth around €8.5 million in exchange for promoting Montpellier and the surrounding area as a touristic destination on Ryanair’s website.

    The Commission’s investigation revealed that:

    • The agreements with Ryanair were financed through State resources and were attributable to the State.APFTE is an association unrelated to the airport operator, funded almost entirely by regional and local French public entities. These public entities closely control the use of the association’s budget.
    • The payments in favour of Ryanair on the basis of the marketing agreements did not correspond to effective marketing needs of APFTE but only served as an incentive for Ryanair to maintain its operations at Montpellier airport.
    • APFTE either concluded the agreements directly with Ryanair and AMS and not with other airlines or organised public tenders that were biased towards Ryanair.

    On this basis, the EU executive has found that the marketing agreements gave an undue and selective advantage to Ryanair over its competitors. The Commission therefore concluded that the agreements amounted to illegal and incompatible aid under EU State aid rules and that the advantage must be recovered.

    EU State aid rules require that incompatible State aid be recovered in order to remove the distortion of competition created by the aid. There are no fines under EU State aid rules and recovery does not penalise the company in question. What it does it to simply restore equal treatment with other companies.

    France now has to recover the illegal State aid amounting to around €8.5 million from Ryanair.

    The non-confidential version of the decision will be made available under the case number SA.47867 in the State Aid Register on the Commission’s competition website once any confidentiality issues have been resolved.

    Add A Comment
    Leave A Reply Cancel Reply

    You must be logged in to post a comment.

    nps
    • Website

    Related Content

    ESIP logo

    Policy Officer, European Social Insurance Platform, ESIP

    Farming tractor - Photo by Jannis Knorr on Pexels

    Omnibus on agriculture: another blow to vulnerable farmers and nature 

    Sponsor: WWF14 May 2025
    Business accounting - Photo by Mikhail Nilov on Pexels

    New EU approach to VAT for e-commerce imports to simplify trade and compliance

    Fitto - Dombrovskis - Hansen - Photo © European Union 2025

    EU to cut red tape to help farmers

    Research - Image by Gerd Altmann from Pixabay

    Digital innovation and AI the focus for EUR 7.3 billion Horizon Europe investment

    Business proposals - Image by Ronald Carreño from Pixabay

    Win more business: why small companies need better proposal tools

    LATEST EU NEWS
    Business accounting - Photo by Mikhail Nilov on Pexels

    New EU approach to VAT for e-commerce imports to simplify trade and compliance

    14 May 2025
    Fitto - Dombrovskis - Hansen - Photo © European Union 2025

    EU to cut red tape to help farmers

    14 May 2025
    Research - Image by Gerd Altmann from Pixabay

    Digital innovation and AI the focus for EUR 7.3 billion Horizon Europe investment

    14 May 2025
    Gaming Fortnite - Image by Pixabay

    EU moves to make Internet safer for children

    13 May 2025
    Pesticides spraying - Photo by Mirko Fabian on Unsplash

    Sales of pesticides in the EU continue downward path

    13 May 2025

    Subscribe to EUbusiness Week

    Get the latest EU news

    CONTACT INFO

    • EUbusiness Ltd 117 High Street, Chesham Buckinghamshire, HP5 1DE United Kingdom
    • +44(0)20 8058 8232
    • service@eubusiness.com

    INFORMATION

    • About Us
    • Advertising
    • Contact Info

    Services

    • Privacy Policy
    • Terms
    • EU News

    SOCIAL MEDIA

    Facebook
    eubusiness.com © EUbusiness Ltd 2025

    Design and developed by : 

    Type above and press Enter to search. Press Esc to cancel.

    Sign In or Register

    Welcome Back!

    Login to your account below.

    Lost password?