EU orders Ryanair, TUIfly to repay illegal Austrian airport aid

European Union state aid regulators have ordered Ryanair and TUI's TUIfly to repay millions of euros in illegal aid given by an Austrian airport. Certain airport services and marketing agreements between the operator of Klagenfurt airport in southern Austria and Ryanair, TUIfly and HLX - which was merged with Hapagfly in 2007 to create TUIfly - gave the carriers an undue advantage, the EC said Friday. "As no profit-driven airport manager would have concluded such loss-making agreements, they amount to state aid to the airlines. Moreover, the agreements simply reduce the operating costs of the airlines, without contributing to common transport objectives," it said, without providing details on the contracts. The Commission said it estimated the illegal aid to Ryanair at around E2m, to TUIfly at 1.1m and to HLX at 9.6m. The companies will have to repay the money to Austria. Ryanair said it would fight the EU ruling. "We note the Klagenfurt decision, where we stopped flying in 2013. We disagree with the findings and have instructed our lawyers to appeal," a Ryanair spokesman said. TUI's German arm said it would examine the EU’s reasoning once it had received it and would then decide on the next steps. A spokesman noted the Commission's ruling referred to transactions that were nearly 10 years in the past and that airline HLX no longer existed.<br/>