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Thu, May 27, 2004

How Do You Flip The Bird In Gaelic?

Ryanair Refuses To Repay Subsidies

Belgium wants its money back. Ryanair CEO Michael O'Leary said Tuesday he's received a letter from Belgian authorities who want his airline to repay about $3.6 million in subsidies to its operation at Charleroi's international airport. O'Leary said he's written back, refusing the demand and promising to appeal a European Union commission's decision in the matter.

The European Commission ruled back in February that the aid from Belgium amounted to illegal state aid -- a big issue in countries that have subsidized their flagship airlines in the past in order to thwart competition. O'Leary says he's confident that he'll win that appeal, so what's the use of paying all that money in the first place?

Besides, O'Leary's Irish-based airline says it simply took advantage of a deal offered by Charleroi to all other airlines.

Last month, Ryanair said it had struck a deal with Belgian aviation officials to continue flying its eleven routes without change.

FMI: www.ryanair.com

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