EU inquiry will not affect Ryanair's business - O'Leary

Ryanair chief executive Mr Michael O'Leary has told the company's shareholders that an EU ruling on its deal with Belgium's Charleroi…

Ryanair chief executive Mr Michael O'Leary has told the company's shareholders that an EU ruling on its deal with Belgium's Charleroi airport, which is expected soon, will not "adversely damage" the airline's business.

Speaking at the company's AGM in Dublin, Mr O' Leary said he was confident the Commission will "formulate a framework which will not just allow but encourage all publicly owned airports to compete on a level playing field with privately owned airports all over Europe".

He said: "No EU ruling could ever prohibit or constrain publicly owned airports from competing with the many privately owned airports which Ryanair operates to."

The Commission initiated a formal inquiry into Ryanair's deal with Charleroi airport late last year, after concern were expressed that the airline could have benefited improperly from state aid when setting up its hub.

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Mr O'Leary told the meeting today that business continues to be robust, with stronger traffic numbers albeit at lower than expected yields.

He said: "We believe that the yield environment this Winter will continue to be depressed."

Mr O'Leary said the airline was on track to meet profit expectations for the current financial year.

While welcoming the Government's decision to break up Aer Rianta, he said:" the slow pace of change, and the continuing failure to adopt and approve competing terminals at Dublin Airport is hindering competition".

"For a country which has such an outstanding record of being forward looking and forward thinking in attracting inward investment, I find it incredible that the enormous investment in aircraft, jobs and tourism offered by Ryanair, is still being held up by nothing other than a lack of action by the Government," he added.