German carriers' case against Hamburg Lübeck's Ryanair deal could have far-reaching consequences
Ryanair is bracing itself for a re-run of the disputed Charleroi state-aid case, this time concerning Hamburg's Lübeck airport, while publicly owned airports await clarification from the European Commission on incentives they can offer airlines.
The Association of German Carriers (ADL), led by Air Berlin, has launched a complaint against Schleswig-Holstein state for alleged misuse of public funds in its service-charge deal with Ryanair at Lübeck Blankensee airport, 60km (40 miles) from Hamburg. Jim Callaghan, Ryanair head of regulatory affairs, admits the carrier is not optimistic going into the case, which is expected to be heard by the middle of the year. "One could say its a cartel of German airlines trying to attack non-German airlines such as EasyJet and ourselves for competing in its territory. In front of a German court, who do you think is going to win?" he asks.
The ADL made a similar complaint at the end of last year to Brandenburg state about its deal with EasyJet at Berlin Sch"nefeld airport. Air Berlin says it is heading the case, which is being prepared by two lawyers acting under instruction from the ADL. The association's members include Lufthansa and LTU as well as Air Berlin.
Callaghan says that despite minor differences in the two cases - Lübeck is not a base - the low-cost carrier fears a similar outcome to the case at Brussels South Charleroi airport, in which the Walloon government was ordered to repay funds judged to be incentives. The case is going through an appeals process and Callaghan says Ryanair is confident the decision will be overturned, thus invalidating any subsequent rulings such as those involving Lübeck or Sch"nefeld.
The European Low Fares Airline Association is awaiting a set of guidelines from the EC on the use of state aid at publicly owned airports, which was due at the end of last year. The draft communication is to be published this month. The EC has yet to consult regional governments or no-frills airlines, the two groups most affected, and insiders say the guidelines will mirror the Charleroi ruling, proscribing a maximum duration of any deal and setting limits on public funds.
JUSTIN WASTNAGE / LONDON
Source: Flight International
