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Ryanair: received €660 million in subsidies from EU airports

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  • 01-05-2010 1:34pm
    #1
    Registered Users Posts: 3,420 ✭✭✭


    In this morning's Irish Times there is a very informative article entitled The subsidies that keep Ryanair profits airborne

    The author was writing about how taxpayers' money is used in some 200 regional EU airports to give Ryanair a competitive advantage in the marketplace; Lufthansa is the latest airline to make complaints about this use of public funds:

    "Lufthansa says that if Ryanair was stripped of free or subsidised airport services in addition to cash, in the form of “marketing support”, it would lose money. “If all the airport subsidies and support paid to Ryanair were taken away, its economic situation would be very different,” says the Thomas Kropp, a spokesman for the German airline."

    And this:

    "French newspapers recently cited figures ranging between €35 million for France alone, and €660 million across the EU, as the value to Ryanair of the subsidies it receives. Until EU investigations into several alleged illegal subsidies are concluded, as well as a case being taken in the European Court by Air France/KLM, only one figure can be relied upon. That is the €35 million of Ryanair subsidies uncovered by audits conducted on several French airports controlled by local authorities. The audits, carried out by France’s cour des comptes (its version of our Comptroller and Auditor General), are representative, say Lufthansa and Air France/KLM, of what Ryanair enjoys at many of Europe’s 200 or so regional airports."

    And this:

    "In some cases, net subsidies amounted to as much as €32 per passenger carried, as with Rodez, a French airport where Ryanair benefited to the tune of at least €3.2 million between 2004 and 2006 for just three flights per route per week. At Brest, subsidies totalled €23 per passenger. At busier Beauvais (Ryanair’s Paris), the subsidy per passenger between 2001 and 2006 was a more modest €9, but total aid in cash and benefits still amounted to €28.6 million."


    Do you think this is hypocritical of Ryanair to be so heavily subsidised by taxpayers when it started life famously raging against state subsidies of airlines such as Aer Lingus as these subsidies created an unfair market?

    Do you think Ryanair should receive state aid for its business? 20 votes

    Yes, it benefits local regions
    0%
    No, it gives Ryanair an unfair advantage and causes job loses elsewhere
    80%
    Djesus_thats_grecaliforNiahomerjay2005IdeoPCrosRun_to_da_hillsschweenBluefox21Mark200TheSpecialOneRHJRoadKillTsdiscusTeddy DanielsClearpreso 16 votes
    No, it is hypocritical of Ryanair of all companies to be heavily subsidised by taxpayers
    20%
    Mike 1972DionysusTheSpecialOneHerodotus 4 votes


Comments

  • Registered Users Posts: 2,422 ✭✭✭The_Joker


    We pay them to pay us back what we already paid them hmmmmm


  • Posts: 17,378 [Deleted User]


    Dionysus wrote: »
    Until EU investigations into several alleged illegal subsidies are concluded, as well as a case being taken in the European Court by Air France/KLM, only one figure can be relied upon. That is the €35 million of Ryanair subsidies uncovered by audits conducted on several French airports controlled by local authorities.

    Why isn't that the figure in your title then?


  • Closed Accounts Posts: 1,957 ✭✭✭Euro_Kraut


    Why isn't that the figure in your title then?

    I guess its highly unlikely that it is limited to France.

    Personally, I have no real problem with this. Just think it very hypocritical O'Leary to be banging on about State interference in the airline industry. He seems to be quite the fan of socialism for big corporations, but less so for actual people.


  • Banned (with Prison Access) Posts: 34,567 ✭✭✭✭Biggins


    Point of order!
    Wasn't the Irish government doing this in earlier years with Air Lingus till the EU or some European body stepped in and said that it was not fair also?


  • Registered Users Posts: 25,560 ✭✭✭✭Kess73


    Subsidies are offered on a regular basis to airlines to get them to use certain airports.


    Ryanair are not the first airline to benefit from this, and will not be the last. Would be pretty stupid of an airline not to take avantage of any subsidies that were legally available tbh.


    There are a lot of airports that are in a position where if Ryanair pulled out, the airport would be in serious trouble. We have one like that in Ireland in Shannon Airport since Aer Lingus withdrew over 75% of their business from that airport.


    Funny how Luftansa say nothing about the subsidies they recieved across Europs last year, or the ball park €600 million in subsidies that a certain French airline announced for last year.

    Aer Lingus can also get European subsidies as well as receiving subsidies in Ireland that are disproportionate in how large when compared to the European ones.


    Nothing story to be honest. Businessman makes sure he gets legal subsidies for his business. If airlines want to have a totally level playing field, then all subsidies should be banned for all airlines. Be interesting to see how many of them would actually be able to trade like that. Aer Lingus for one would not be able to.


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  • Registered Users Posts: 3,420 ✭✭✭Dionysus


    No, it is hypocritical of Ryanair of all companies to be heavily subsidised by taxpayers
    Why isn't that the figure in your title then?

    :) Read the entire sentence, taken directly from that article, that is bolded in the opening post:

    "French newspapers recently cited figures ranging between €35 million for France alone, and €660 million across the EU, as the value to Ryanair of the subsidies it receives.


  • Registered Users Posts: 3,420 ✭✭✭Dionysus


    No, it is hypocritical of Ryanair of all companies to be heavily subsidised by taxpayers
    Biggins wrote: »
    Point of order!
    Wasn't the Irish government doing this in earlier years with Air Lingus

    It was, it very much was. And leading that attack on these state subsidies was no less a personage than Michael O'Leary.:rolleyes:


  • Registered Users Posts: 17,441 ✭✭✭✭jesus_thats_gre


    No, it gives Ryanair an unfair advantage and causes job loses elsewhere
    Does Dublin Bus, Bus Eireann or Irish Rail get subsidies like these to maintain unfavourable routes?


  • Registered Users Posts: 29,346 ✭✭✭✭homerjay2005


    No, it gives Ryanair an unfair advantage and causes job loses elsewhere
    means cheaper flights for me, so i am all for this!give them more, more more...


  • Closed Accounts Posts: 61 ✭✭Herodotus


    No, it is hypocritical of Ryanair of all companies to be heavily subsidised by taxpayers
    I'm surprised no one mentioned this so here it is...

    The EU spends half its entire budget on subsidizing agriculture

    It's incredible really. We are in the 21st century, money is needed for proper R&D in areas such as physics, chemistry, medical research etc. Areas that all citizens would benefit from. And yet the EU spends 40 or so billion euros a year on supporting an agrarian economy!

    Granted there are positive arguments for some level of support (as there is for any industry), but why half the EU's resources should be spent on something that accounts for less than 5% of eurowide GDP is beyound belief!


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