Brussels Airlines, the flag carrier of Belgium, has recently lodged a complaint against Brussels South Charleroi Airport (BSCA) for alleged illegal state aid involving the air navigation service provider (ANSP) skeyes. The airline claims that this alleged aid has given an unfair advantage to its competitor, Ryanair, which operates a significant number of flights from Charleroi Airport.
The complaint filed by Brussels Airlines centers around the provision of air traffic control services by skeyes at Charleroi Airport. The airline argues that skeyes has been providing these services at a significantly lower cost to Ryanair compared to other airlines operating from the airport. This, according to Brussels Airlines, amounts to illegal state aid as it gives Ryanair an unfair advantage in terms of operational costs.
State aid refers to any form of assistance provided by a government or public authority that confers a selective economic advantage on certain companies or sectors. Such aid is generally prohibited by European Union (EU) competition rules, as it distorts fair competition within the single market.
Brussels Airlines claims that the alleged illegal state aid has resulted in an unlevel playing field at Charleroi Airport, where Ryanair enjoys lower operational costs due to the allegedly subsidized air traffic control services provided by skeyes. This, in turn, allows Ryanair to offer lower fares and potentially gain a larger market share at the expense of other airlines operating from the airport.
The complaint filed by Brussels Airlines is now being investigated by the European Commission, which is responsible for enforcing EU competition rules. If the Commission finds evidence of illegal state aid, it has the power to order the recovery of any aid granted and impose fines on the parties involved.
This is not the first time that allegations of illegal state aid have been made against Charleroi Airport. In 2004, the European Commission ruled that certain financial incentives provided by the Walloon Region to Ryanair at Charleroi Airport constituted illegal state aid. The Commission ordered the recovery of the aid, which amounted to around €4 million.
The outcome of the current investigation will depend on whether the European Commission finds sufficient evidence to support Brussels Airlines’ claims. If the allegations are proven, it could have significant implications for the competitive landscape at Charleroi Airport and potentially lead to changes in the provision of air traffic control services by skeyes.
In response to the complaint, both Ryanair and skeyes have denied any wrongdoing. Ryanair argues that it pays market rates for air traffic control services at Charleroi Airport and that Brussels Airlines is simply trying to stifle competition. Skeyes, on the other hand, maintains that it operates independently and provides services to all airlines in a non-discriminatory manner.
As the investigation unfolds, it remains to be seen whether Brussels Airlines’ complaint will hold merit and whether any illegal state aid has indeed been provided to Ryanair at Charleroi Airport. The outcome of this case will not only impact the competitive dynamics at Charleroi but also serve as a reminder of the importance of fair competition within the aviation industry.
- SEO Powered Content & PR Distribution. Get Amplified Today.
- PlatoData.Network Vertical Generative Ai. Empower Yourself. Access Here.
- PlatoAiStream. Web3 Intelligence. Knowledge Amplified. Access Here.
- PlatoESG. Automotive / EVs, Carbon, CleanTech, Energy, Environment, Solar, Waste Management. Access Here.
- BlockOffsets. Modernizing Environmental Offset Ownership. Access Here.
- Source: Plato Data Intelligence.