IP/07/1794
Brussels, 28th November 2007
Commission launches formal investigation into potential State aid by the CCI of Pau-Béarn.
Following up on a notification by the French authorities, the European Commission has today started a formal investigation into contracts concluded by the Chambre de Commerce et d'Industrie de Pau-Béarn (CCIPB) with Ryanair and its subsidiary Airport Marketing Services Ltd. At this stage the Commission cannot conclude that the conditions of the contracts are compatible with the common market and must therefore open a formal investigation to gather the necessary evidence.
The Commission's investigation relates to two different contracts. The first one concerns the conditions for using the airport infrastructure at the airport of Pau. The second contract, concluded with Ryanair's subsidiary Airport Marketing Services, covers the conditions for providing marketing services to CCIPB in order to promote the air route in question.
On the basis of the evidence submitted in the notification, the two contracts appear to effectively function as one agreement and the financing by CCIPB may constitute start-up aid for the low-cost airline. Furthermore, the information available to the Commission does not allow it to conclude that such financing is in line with Community rules on start-up aids as concerns in particular the aid intensity and duration, the long term viability of the subsidized route(s), or the eligibility of expenditures.
The opening of a formal investigation is a procedural step that does not prejudge the conclusion of the Commission.
