This article from NYTimes.com has been sent to you by psa188@xxxxxxxxx /-------------------- advertisement -----------------------\ FOR YOUR CONSIDERATION: IN AMERICA - IN THEATRES NOVEMBER 26 Fox Searchlight Pictures proudly presents IN AMERICA directed by Academy Award(R) Nominee Jim Sheridan (My Left Foot and In The Name of the Father). IN AMERICA stars Samantha Morton, Paddy Considine and Djimon Hounsou. For more info: http://www.foxsearchlight.com/inamerica \----------------------------------------------------------/ Ryanair Chief Makes Pitch for Allowing Airport Deal November 13, 2003 By BRIAN LAVERY DUBLIN, Nov. 12 - The European Commission will probably rule against an agreement that provided discounted landing fees for Ryanair at Charleroi Airport south of Brussels when its investigation concludes in a few weeks, Ryanair's chief executive, Michael O'Leary, said on Wednesday. The airline, one of Europe's largest discount airlines, said in a statement that Mr. O'Leary's comments were based on "feedback received from a number of sources within the commission" and that Ryanair had not seen a working draft of the report. A ruling against the deal could damage Ryanair's strategy of flying to secondary airports that can offer lower fees, often with packages intended to woo its business. Mr. O'Leary, in his trademark hyperbolic style, has dubbed the investigation Ryanair's Waterloo. "A negative decision by the commission in this case will be manifestly in error and will do untold damage to the growth of low-fare air travel and competition in European air transport," he said. If the ruling is unfavorable, Ryanair said it would stop flying to Charleroi and would appeal to the European Court of Justice in Luxembourg. The comments pushed shares in Ryanair down almost 4 percent, to 6.56 euros ($7.55), in Dublin, where the company is based. The investigation began after a complaint from Zaventem Airport in Brussels about the discounts, which the commission could decide represent illegal state support of a private company. Charleroi airport is owned by the regional government of Wallonia. A Ryanair spokeswoman declined to elaborate on its specific terms with Charleroi, which was signed last January, but in other similar arrangements, the airline pays as little as half the usual landing fees, and receives benefits like free marketing and staff accommodations. The company would not say how much the benefits and savings are worth. Ryanair is the only airline that now flies into Charleroi, and 2 million of its more than 20 million passengers this year will pass through there. Before it became Ryanair's first Continental hub in 2001, the airport handled fewer than 400,000 passengers a year. The commission's decision will have implications for other low-budget European carriers like easyJet of Britain, which recently received a discount deal with Berlin Schönefeld, another government-owned airport. Only 18 percent of Ryanair's passenger traffic flies through publicly owned airports that offer discounted landing fees, the spokeswoman said. Analysts said the airline might be speaking out now, even on the basis of unconfirmed rumors about a draft report, to try to pre-empt an unfavorable ruling. "Until the commission actually make their pronouncement, there is still an opportunity to influence the outcome," said Linda Hickey, an equities analyst with NCB Stockbrokers in Dublin. She called Ryanair's announcement "a last lobbying attempt to convince the commission that it would be unwise to find against them." In the worst case, Ms. Hickey said, if Ryanair began paying full landing charges at Charleroi and passed on a nominal amount of one or two euros to its customers, the fees would cut revenue by about 3 percent, or 10 million euros ($11.7 million). Virgin Express, another discount European carrier, said on Wednesday that it would begin serving Charleroi Airport if Ryanair stopped flying there, according to the Dow Jones news service. A ruling against Ryanair would not be without precedent. This year, a French court ruled that similar support Ryanair was receiving from Strasbourg Airport represented illegal government aid. Ryanair subsequently moved to another airport, and officials in Strasbourg are considering privatizing the airport so they could offer a deal that might woo Ryanair back. http://www.nytimes.com/2003/11/13/business/worldbusiness/13ryan.html?ex=1069731760&ei=1&en=33bac1d9275cc18a --------------------------------- Get Home Delivery of The New York Times Newspaper. 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