WRITTEN QUESTION P-3477/01

by Bart Staes (Verts/ALE) to the Commission

(10 December 2001)

Subject: Investigation into Wallonia Region subsidy to Ryanair

In answer to my Written Question P-1767/01(1), the Commission indicated that it could see nothing wrong with the aid provided by the Wallonia Region to the Ryanair airline company for its use of Charleroi airport. The Commission nevertheless stated that it intended to check whether the information it obtained earlier [was] still valid.

New information about Ryanair has become available. In December and January it is giving away 300 000 free tickets in Europe. 50 000 of those will be for flights out of Charleroi. A so-called master agreement has been concluded between Ryanair and that airport for a period of 15 years. During that period, Ryanair will enjoy a number of advantages (see also Written Question P-1767/01). Over and above those subsidies, the Wallonia Region government is also providing 250 000 in hotel and restaurant costs for Ryanair crews. Every new destination out of Charleroi will also be good for an extra 160 000. And the Region is contributing 768 000 to training, in particular for pilots, is making office accommodation available free of charge and spending some 4 000 on so-called miscellaneous expenses. Yet the amount Ryanair charges would-be pilots for their training is no less than 24 170.

Has the Commission meanwhile checked whether the information it obtained earlier about possible aid from the Wallonia Region to Ryanair is still accurate? Is that information compatible with Community competition law? Will the Commission investigate further?

Does the Commission think that Charleroi and the surrounding region can be described as a backward area, which would allow the authorities to provide financial assistance for infrastructural development?

Does the Commission consider the subsidies from the Wallonia Region for a period of 15 years, as described above and in question P-1767/01, as being compatible with the provisions governing backward regions?

(1) OJ C 350 E, 11.12.2001, p. 222.

Answer given by Mrs de Palacio on behalf of the Commission

(21 January 2002)

Following press reports at the start of the summer about possible advantages conferred on Ryanair for operating at Charleroi airport, in September 2001 the Commission asked the Belgian authorities for certain details so that it could appraise the nature of any advantages enjoyed by Ryanair in the light of the rules on State aid in the EC Treaty.

This information was recently supplied by the Belgian authorities and is now being assessed by the Commission.

In reply to the Honourable Member's question about the status of Charleroi and the surrounding area, to give some facts without prejudging the analysis in progress, the Commission informs the Honourable Member that, based on the regional aid map for Belgium for 2000-2006, which was considered compatible with Article 87(3)(c) (formerly Article 92) of the EC Treaty(1), it can be considered a less favoured region eligible for regional aid, with an aid intensity ceiling of 20 % net grant equivalent.

(1) State aid No 799/1999 Belgium. Decision available from site: http://europa.eu.int/comm/secretariat_general/sgb/state_aids/industrie_1999.htm.