Economy

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Economy

05 Nov, 2025

EU Orders France to Reclaim €1.8 Million from Ryanair Over Illegal State Aid

Basilia Magsaysay

The European Union has mandated France to recuperate €1.8 million (approximately $2.1 million) from Ryanair, concluding that the Irish low-cost carrier benefitted from illegal state aid linked to Carcassonne airport. The European Commission, which monitors antitrust regulations within the EU, initiated an investigation in 2012 to assess whether contracts between Ryanair and the airport’s previous operator, the Chamber of Commerce and Industry of Carcassonne-Limoux-Castelnaudary (CCI), complied with state aid provisions.

The probe revealed that 11 contracts granted to Ryanair by the CCI — responsible for managing the airport until 2011 — provided an undue advantage to the airline. According to the Commission, the financial terms of these agreements disproportionately favored Ryanair as the CCI increased marketing fee payments to the airline for comparable services while simultaneously lowering passenger charges.

This imbalance resulted in a total benefit estimated at €1.8 million. The Commission has instructed France to recover the sum along with accrued interest, emphasizing the incompatibility of this aid with EU rules.

A spokesperson from the European Commission stated, "France must now recover the incompatible aid, plus interest."