The European Commission has ruled that three German measures supporting Ryanair and Frankfurt-Hahn airport violate EU State aid rules. Germany must now recover the illegal aid, including interest.
In a separate decision, the Commission also determined that other public funding for Frankfurt-Hahn airport, Haitec AG, and Ryanair does not constitute State aid.
Margrethe Vestager, Executive Vice-President for competition policy, highlighted the importance of upholding fair competition. “Fair competition among airports and airlines is essential for consumers, economic growth, and jobs.”
“Our investigation confirmed that several public funding measures for Frankfurt-Hahn airport and Ryanair violate EU State aid rules. These measures gave Ryanair an unfair advantage over competitors and harmed other regional airports. Germany must now recover the aid.”
The Commission’s Investigation
In October 2018, the Commission launched an in-depth investigation into German public funding for Frankfurt-Hahn airport and Ryanair. This investigation was part of the Commission’s ongoing efforts to ensure fair competition in the aviation sector across the European Union.
The probe aimed to determine whether the public funding measures complied with EU State aid rules, which are designed to prevent member states from giving unfair advantages to specific companies or industries.
State aid, as defined by EU law, occurs when a government provides financial support that gives certain companies an unfair advantage. The investigation examined:
2 measures favoring Frankfurt-Hahn airport:
- A land sale guarantee from Rhineland-Palatinate
- The return of a land plot to the airport without compensation
4 measures benefiting Ryanair:
- Two marketing agreements with Rhineland-Palatinate (2005 and 2017)
- Three airport service agreements with Frankfurt-Hahn (2013, 2015, and 2016)
- Training support
- Lease of a crew/pilot school and maintenance hall
3 Measures Incompatible with State Aid Rules
The Commission found three measures incompatible with EU State aid rules. These included the return of a land plot to Frankfurt-Hahn airport without compensation, two marketing agreements between Rhineland-Palatinate and Ryanair, and training support provided to Ryanair.
These measures involved State aid, as they were not aligned with market conditions or concerned economic activities that didn’t meet Germany’s compatibility claims.
The decision highlights the Commission’s commitment to maintaining a level playing field in the aviation industry, ensuring that public funds are not used to give certain companies an unfair competitive edge.
Germany must now recover about €13-14 million plus interest from Ryanair and €1.25 million plus interest from
Frankfurt-Hahn airport. EU rules require prompt recovery of incompatible State aid to restore fair competition. There are no fines, but beneficiaries must forfeit their unfair advantages.
The EU Commission has ordered Ryanair and Frankfurt-Hahn airport to repay around €15 million in funding that violated EU State aid rules.
avsn.co.uk