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European

Air Berlin sues airport on Ryanair deal

Ryanair's CEO Michael O'Leary announcing five new routes on December 18, 2007. Photo: Marco Secchi/Scoopt/Getty Images

Ryanair's CEO Michael O'Leary announcing five new routes on December 18, 2007. Photo: Marco Secchi/Scoopt/Getty Images

By Karin Matussek

Wednesday June 25 2008

Air Berlin, Europe's third- biggest low-cost airline, asked Germany's highest civil court to review fee reductions given to Ryanair Holdings Plc by Luebeck Airport.

Air Berlin is suing airport owner Flughafen Luebeck for giving Ryanair special treatment, company spokeswoman Nadine Bernhardt said yesterday. Last month, the Berlin-based airline lost a court ruling over the issue.

It has asked the Federal Court of Justice to consider an appeal, according to Bernhardt.

Reduced fees for Ryanair at European airports are the subject of several lawsuits and investigations.

The European Union is looking into benefits given to Ryanair by Finnish and Germans hubs, including Luebeck in northern Germany and the Frankfurt-Hahn airport.

Deutsche Lufthansa AG, Europe's second- biggest airline, lost a ruling over the issue last year.

"We are fighting here for the whole industry"' Bernhardt said.

"The airport grants unlawful subsidies to Ryanair."

Dublin-based Ryanair called the claims "doomed" and "baseless".

Luebeck airport is privately held, so it can freely negotiate its fees, Ryanair said in a statement yesterday. Luebeck is 90pc owned by New Zealand-based Infratil Ltd., according to the airport's website. Luebeck city owns 10pc.

The Schleswig-Holstein Higher Regional Court threw out Air Berlin's case in May, ruling the airline can't contest subsidies granted to its competitor.

The 27-nation EU is the agency that may take action in such cases, the court said.

(© Bloomberg)

- Karin Matussek

 
 

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