Ryanair seeks end to 'travel ban'

Ryanair today said it has evidence that the European Commission discriminates against low-cost airlines.

At a press conference this morning, chief executive Michael O’Leary released copies of e-mails received from Amex, the commission’s travel agency confirming that it is not allowed to book low cost flights or reimburse travel expenses to and from Brussels Charleroi airport.

Ryanair also released a letter from the commission’s director for administration and Payment which stated “It is true that the terms of this contract do prevent Amex from booking tickets with ‘low-cost’ airlines.”

The airline has called on the commission to explain its policy and to end the ban on budget carriers.

Mr O'Leary first learned of the policy when he was invited by the commission to be a guest speaker at a conference last year. He was informed then that he could not be booked on a Ryanair flight to Charleroi, where the airline has a hub, and was offered a ticket on Aer Lingus to Zaventem, the main airport in Brussels.

Lawyers for Ryanair filed a formal complaint with the European Court of Auditors earlier this month, asking it to assess “the legality, regularity and financial soundness” of the travel policy.

“The Amex e-mails and EU commission letters which we have released today unequivocally admits that the EU Commission “prevents” its travel agency from making bookings on low fare airlines, which would save the hard pressed EU taxpayer millions of euros each year," said Mr O'Leary.

"At a time when the Commission is preaching austerity to Europe’s nation states and citizens, it should take a lead and actively compel both its bureaucrats and its travel agency to book lower cost low fare airlines at Charleroi whenever that option exists over the high fare, fuel surcharging, frequently delayed flag carriers at Brussels Zaventem and elsewhere," he added.

The commission has previously claimed that its policy is designed for the convenience of travelling officials and denied that it discriminates against low-cost carriers.

Mr O'Leary also said today Ryanair is interested in acquiring the State's 25 per cent holding in Aer Lingus but claimed the Government would not sell it to the airline.

"Aer Lingus has no independent future," said Mr O'Leary. "It's subscale, its cost base is too high and it has no capacity to grow. They're stuck on a remote island in the west of Europe with no future, and unfortunately the government has no plan for it either."

Mr O'Leary also said he did not expect any headline growth for Ryanair in 2014 and 2015.

"We'll still be opening up new routes and new bases, but be closing the worst performing airports and bases. We'll continue to have new route and airport growth through 2014 and 2015 as a result of churn, but we won't have any topline growth," he said.

Additional reporting: Bloomberg