{"id":143890,"date":"2020-05-05T15:02:50","date_gmt":"2020-05-05T15:02:50","guid":{"rendered":"https:\/\/www.bnreport.com\/ryanairs-oleary-slams-state-aid-junkies-lufthansa-and-air-france\/"},"modified":"2020-05-05T15:02:50","modified_gmt":"2020-05-05T15:02:50","slug":"ryanairs-oleary-slams-state-aid-junkies-lufthansa-and-air-france","status":"publish","type":"post","link":"https:\/\/www.bnreport.com\/en\/ryanairs-oleary-slams-state-aid-junkies-lufthansa-and-air-france\/","title":{"rendered":"Ryanair\u2019s O\u2019Leary slams \u2018state aid junkies Lufthansa and Air France\u2019"},"content":{"rendered":"

Ryanair CEO Michael OLeary has told the EU\u2019s transport chief to do something about flight refunds instead of \u201ctalking nonsense\u201d about state aid.<\/p>\n

O\u2019Leary\u2019s ire stems from Brussels relaxing the rules amid the lockdown and allowing the likes of France to bail out airlines with which it has strong historic links.<\/p>\n

[contfnewc]
\n[contfnewc]
\nIt comes amid a separate controversy that has seen a number of airlines flout EU law and refuse to give customers cash refunds for flights cancelled due to lockdown.<\/p>\n

Adina Valean, the EU\u2019s transport commissioner, told Euronews last week that Brussels was trying to help airlines with their liquidity problems and that the measures were temporary.<\/p>\n

O\u2019Leary told Euronews: \u201cShe is completely wrong, firstly if you\u2019re putting in place these rules so the Germans can subsidise only Lufthansa or the French can subsidise only Air France KLM it is discriminatory and it is in breach of state aid rules.<\/p>\n

\u201cThe transport commissioner should be out doing something effective about refunds instead of talking nonsense about these breaches of state aid and competition rules.\u201d<\/p>\n

[contfnewc]
\n[contfnewc]
\nOn Monday, the European Commission approved France\u2019s \u20ac7 billion state aid package for Air France-KLM.<\/p>\n

Meanwhile, Lufthansa is reported to be in discussions with the German government<\/a> about a bailout package worth up to \u20ac10 billion.<\/p>\n

The EU generally prohibits national governments from providing financial aid to homegrown companies because it distorts competition within the single market. But rules have been loosened as the coronavirus lockdown threatens businesses.<\/p>\n

O\u2019Leary argues airlines don\u2019t need state aid and that payroll support schemes across Europe \u2014 that see governments step in and pay employees\u2019 salaries to prevent firms firing them \u2014 are sufficient to stay afloat.<\/p>\n

\u201cWhat\u2019s clearly happening is we have the French and the Germans creating a huge fund \u2014 billions of state aid \u2014 that will allow them to either low-cost sell against the likes of Ryanair during the recovery period or allow them to engage in mergers and acquisitions and buy up all their weaker competitors when this is over.<\/p>\n

\u201cInstead of governments treating all airlines equally, they are massively subsidising the state aid junkies like Lufthansa and Air France.<\/p>\n

\u201cAir Italia has been renationalised. We don\u2019t want state aid but we would like to see significant reductions in airport charges in Italy instead of these massive doses of state aid crack cocaine.\u201d<\/p>\n

Ryanair has grounded nearly its entire fleet because of the COVID-19 pandemic and ensuing lockdown.<\/p>\n

Last week, it announced proposals to cut as many as 3,000 jobs. It also plans pay cuts of up to 20 per cent and unpaid leave for other staff.<\/p>\n

COVID-19 lockdowns have led to an almost complete standstill in airline travel. Many airlines have grounded almost all their flights.<\/p>\n

British Airways said it intends to cut up to 12,000 jobs. United Airlines is expected to slash 30 per cent of management jobs starting in October. And Air Canada, the country\u2019s largest airline, announced a billion-dollar loss on Monday.<\/p>\n

\u201cWere now living through the darkest period ever in the history of commercial aviation, significantly worse than 9\/11, SARS and the 2008 financial crisis,\u201d Air Canada CEO Calin Rovinescu said in a conference call with analysts.<\/p>\n

Euronews has asked Valean to respond to O\u2019Leary\u2019s comments.<\/p>\n

Read from source<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

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