Ryanair in Klagenfurt (Photo: Ryanair).
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ECJ: Ryanair has to pay back subsidies in Carinthia

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The low-cost airline Ryanair has received high subsidies in Carinthia in the past. These have to be paid back because last week the European Court of Justice rejected the last possible appeal.

It was a long time ago, because in the early 2000s, the then state government attracted some airlines with the help of subsidies. At first glance, this was a success because the airport had more passengers than ever before. However, the practice was not particularly sustainable because the carriers withdrew when the subsidies expired.

Both Air Berlin and Ryanair even publicly announced this step. True to the motto: Either the money continues to flow or you quit. The latter also happened. Years later it was discovered that the subsidies paid out to Ryanair, Hapag-Lloyd Express (later Tuifly) and Air Berlin were illegal.

In 2016, the EU Commission ordered the aid to be repaid. The airlines concerned have taken the matter to court. Most recently, Tuifly was worth 10,7 million euros and Ryanair was worth two million euros. The claims against Air Berlin were not pursued further for economic reasons due to the bankruptcy.

While Tuifly failed before the ECJ a few months ago, Ryanair was also hit last week. After years of litigation, the European Court of Justice confirmed that the funding was illegal and that the public sector must reclaim it. The affected carriers no longer have any further legal remedies available. The Carinthian state government has already budgeted the funds that Tuifly has to repay plus interest in the state budget.

There was actually a ruling in 2018 that said Ryanair had to pay back. The carrier managed to start new proceedings, which were initially conducted before the EU court. Alleged new evidence was brought forward. The lawsuit was dismissed because it would not be in accordance with the rules of procedure. The ECJ confirmed the lower court last week.

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