EU H.U.B.S. and Ryanair
Posted: Thu Jan 29, 2004 6:19 amWell the EU Technocrats have once again proved they suffer from H.U.B.S. (Head Up Bum Syndrome).
It was, until recently, a little used airfield in a down-at-heel Belgian backwater surrounded by abandoned coalfields. But Brussels' Charleroi airport is at the centre of a titanic battle which is threatening the future of Europe's boom in low-cost flights.
After a two-year investigation, the European commission will next week declare illegal a controversial deal struck by the Wallonian local government to persuade Ryanair to use Charleroi as a base for international flights.
According to Ryanair, the commission's verdict could compromise low-cost travel across the continent, forcing budget carriers to rip up dozens of deals with publicly owned airports.
Ryanair's chairman, Michael O'Leary, yesterday delivered a vitriolic attack on the commission, claiming it had reached a "communist" view which amounted to "a complete cock-up by bureaucrats in Brussels designed to overturn 20 years of deregulation".
He said it would lead to higher fares, the withdrawal of routes and the abandonment of many regional airports: "This is not just an attack on Ryanair - it's an attack on all low fares everywhere."
The commission's findings emerged at the worst possible moment for Ryanair. The airline, which is the biggest low-cost carrier in Europe, yesterday revealed a catastrophic set of financial results which showed the clearest signs yet that its meteoric growth was faltering.
Ryanair disclosed its first fall in profits since 1989 and admitted it had been forced to slash its fares by up to 30% this month to fill its aircraft. Its shares collapsed by 25%, wiping more than
It was, until recently, a little used airfield in a down-at-heel Belgian backwater surrounded by abandoned coalfields. But Brussels' Charleroi airport is at the centre of a titanic battle which is threatening the future of Europe's boom in low-cost flights.
After a two-year investigation, the European commission will next week declare illegal a controversial deal struck by the Wallonian local government to persuade Ryanair to use Charleroi as a base for international flights.
According to Ryanair, the commission's verdict could compromise low-cost travel across the continent, forcing budget carriers to rip up dozens of deals with publicly owned airports.
Ryanair's chairman, Michael O'Leary, yesterday delivered a vitriolic attack on the commission, claiming it had reached a "communist" view which amounted to "a complete cock-up by bureaucrats in Brussels designed to overturn 20 years of deregulation".
He said it would lead to higher fares, the withdrawal of routes and the abandonment of many regional airports: "This is not just an attack on Ryanair - it's an attack on all low fares everywhere."
The commission's findings emerged at the worst possible moment for Ryanair. The airline, which is the biggest low-cost carrier in Europe, yesterday revealed a catastrophic set of financial results which showed the clearest signs yet that its meteoric growth was faltering.
Ryanair disclosed its first fall in profits since 1989 and admitted it had been forced to slash its fares by up to 30% this month to fill its aircraft. Its shares collapsed by 25%, wiping more than
