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Watch the trailer at: http://www.foxsearchlight.com/theclearing/index_nyt.html \----------------------------------------------------------/ Ryanair in Pact to Remain at Belgian Airport April 10, 2004 By ERIC PFANNER The International Herald Tribune Defusing a regulatory dispute that threatened to block its expansion on the Continent, Ryanair, the rapidly growing European low-fare airline, said yesterday that it had reached an agreement to keep using the airport at Charleroi, Belgium, for its Brussels flights. Ryanair, based in Dublin, threatened to withdraw service from Charleroi in February after the European Commission voided its previous agreement with the Wallonia regional government, which owns the airport. The commission said that the discount landing fees charged to Ryanair by the airport amounted to an illegal subsidy under European law. Under the new agreement, the airport will extend the same favorable terms to any other airline using the field, in an effort to make the arrangement pass regulatory muster. Ryanair, which uses Charleroi as a hub, accounts for more than 90 percent of passenger traffic there. Ryanair is one of the biggest and most successful of the new breed of airlines that have shaken up the European travel market by sharply cutting fares and opening new routes. A major part of its strategy has been to make use of secondary airports within about an hour's drive of large cities, where costs can often be kept much lower than at major airports. Ryanair said in February that the commission's ruling would oblige the company either to raise fares or to shift service out of Charleroi. After the agreement on Friday, "fares for passengers will not go up, and we look forward to further extension of our route network from the center of Europe," said David Gering, Ryanair's sales and marketing manager for Belgium, the Netherlands and Luxembourg. The new agreement is subject to approval by the European Commission; its office was closed yesterday. Both Ryanair and the Wallonia government said that they were confident that the new accord answered the commission's main objection to the earlier deal: that it gave Ryanair unfair advantages over other carriers. A spokesman for the commission told Bloomberg News that it had not yet seen the agreement and that he could not comment on it. The airport will now charge all airlines, not just Ryanair, a fee of 5 euros ($6.05) for each passenger. The commission's February ruling would have instead required that Ryanair pay the higher fees that had formerly been charged to other carriers, adding an estimated 6 to 8 euros ($7.25 to $9.70) to the average Ryanair ticket price. "Ryanair is very hard in negotiations," said Françoise Zonemberg, a spokeswoman for the Wallonia government. "It was not easy to have an agreement, but finally they said they wanted to stay in Charleroi." Ms. Zonemberg said the government decided the loss of revenue from reducing the fees charged to other carriers would be less of a blow than losing the two million Ryanair passengers a year who pass through Charleroi, which is about 28 miles from central Brussels. A formal announcement of the agreement is scheduled for Tuesday, after a few final details are resolved, Mr. Gering said. Ryanair and its chief executive, Michael O'Leary, have often clashed with regulators as the company has fought to penetrate protected national aviation markets and compete with national "flag carrier" airlines through low fares. In February, Mr. O'Leary called the European Commission an "evil empire" after it ruled that Ryanair should repay about $4.8 million in fee discounts to Charleroi airport. Ryanair has appealed the decision to the European Court of Justice in Luxembourg, saying it threatens the growth of low-fare travel in Europe. http://www.nytimes.com/2004/04/10/business/worldbusiness/10ryan.html?ex=1082605599&ei=1&en=1f8dac1b7ebfb7a9 --------------------------------- Get Home Delivery of The New York Times Newspaper. Imagine reading The New York Times any time & anywhere you like! Leisurely catch up on events & expand your horizons. Enjoy now for 50% off Home Delivery! 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