Ryanair quickly reacted to plans announced by the Dutch government that it would provide €3.4 billion to prop-up its share of Air France-KLM by calling for the EU Commission to block what the LCC termed “the latest illegal state aid”.
The Dutch government announced earlier on Friday it would provide €3.4 billion in support to the Dutch arm of Air France-KLM, ending disputes between the respective country’s governments.France had previously agreed to provide €7 billion in aid to Air France.
Ryanair said in its statement that the Dutch government’s move equates to a subsidy of “€200 on behalf of every man, woman and child of Holland. The Irish carrier said that the Dutch government was “great” at preaching fiscal conservatism to other EU countries, “but when it comes to bailing out flag carrier airlines they write subsidy checks even faster than Mrs Merkel”.
Ryanair chief executive Michael O’Leary said that 16 years after Air France’s takeover of KLM, the Dutch move, “is a poor deal for the trading nation, which likes to lecture other EU countries about fiscal rules but has no problem breaking these rules when it comes to subsidising KLM.
This Dutch government subsidy is also bad news for competition and consumer interests as it will further delay the necessary reforms at the bloated Air France-KLM. For this €200 KLM subsidy, every Dutch man, woman and child could buy 5 flights with Ryanair, instead of paying for the failure and inefficiency at Air France-KLM.