Economy

Ryanair. “(European) Commissioner Vestager was wrong” by not asking TAP to provide more slots sooner – Observer

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Ryanair has once again criticized the European Commission’s decision to allow state aid to TAP, doubting that the transfer of 18 slots in Lisbon, they demanded that the Portuguese company enter into force after the next summer, blocking its use by competitors.

In a statement to the company budgetary starts by accounting for € 2.6 billion (€ 2.55 billion) of government aid announced yesterday to restructure TAP for the country’s 10 million inhabitants, concluding that the amount is equivalent to “€ 260 for every man, woman and child in Portugal “.

“There is no economic rationale for providing an airline such as TAP with more than 2.6 billion euros (in fact, with compensation for damages from the pandemic, the support package reaches 3.2 billion euros) in state aid, protecting it from competition at Portela airport in Lisbon. “Said Executive Chairman Michael O’Leary in the first reaction to the editorial endorsement of the TAP.

“Commissioner Margrethe Vestager was clearly mistaken in not demanding that TAP hand over at least 30% of its slots, which is equivalent to a 30% reduction in the fleet. The Commissioner’s decision to postpone this 5% minimum supply, equivalent to 18 day intervals, from summer to winter 2022 will further undermine competition and consumer choice in Lisbon and delay the recovery of Portela airport during the pandemic. ”

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Recognizing that TAP and the government have confirmed a 30% reduction in the fleet (to 94 aircraft), this means that the carrier will no longer have aircraft to use all seats at Lisbon airport this summer. However, “Commissioner Vestager (in charge of competition) demanded that TAP only deliver 18 of them. slots per day (less than 5% of the total in Lisbon) and only from November 2022 (when IATA Winter comes into force), which allows TAP to continue blocking them in the capital and continue to hinder competitions and the choice of low-cost airlines such as Ryanair. “

Company budgetary Ireland has been the most ardent opponent of TAP state aid, having filed several complaints against all favorable decisions of the European Commission with the General Court of Justice of the European Union.

Ryanair CEO also urges the Competition Commissioner to stop “providing government aid to dead-end domestic airlines and start promoting competition and consumer interest, accelerating significant phase-out slots as soon as possible, even when national carriers receive billions of euros in useless government aid. “

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