FlyerTalk Forums - View Single Post - Without subsidies, Ryanair would be in the red
Old Jul 2, 2012 | 6:36 pm
  #7  
NickB
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Originally Posted by Bluestar
I understand your point, but I am not sure that Ryanair would have been able to find so many profitable-yet-unsubsidised route opportunities.
I think that this is an exaggeration. In any event, this changes nothing to the fact that the starting premise of the article is misconceived.


And you comment that "the subsidies are allowed...". Actually, subsidies for new air routes are allowed in the EU only under fairly strict conditions. The situation you mention where a route is not going to be profitable without a subsidy is a specific case, a Public Service Obligation
Nope.This is not what I had in mind but rather route start-up subsidies (hence why my post referred to "start a route"), which the Commission regards as acceptable under certain conditions.
But I would certainly agree with you that there are quite a few which are dubious. Some were in fact found by the Commission to be incompatible with EU law when it first developed its policy on this. Ryanair huffed and puffed in its usual manner but had no choice but to comply. I also agree that we can expect more fun on that front and more howling by FR how all of this is so unfair and crocodile tears at to the pain inflicted on consumers or some such.
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