BRUSSELS (Reuters) - EU state aid regulators have ordered Irish budget airline Ryanair (I:RYA) and German travel company TUI's (L:TUIT) unit TUIfly to repay millions of euros in illegal aid given by an Austrian airport.
"Certain airport services and marketing agreements concluded between the airport operator and airlines Ryanair, HLX and TUIfly gave the latter an undue advantage, which cannot be justified under EU state aid rules," the European Commission said on Friday.
HLX merged with Hapagfly in 2007 into the new brand TUIfly.
"The amounts of incompatible state aid are estimated at around 2 million euros (£1.72 million) for Ryanair, 1.1 million euros (£943,279.10) for TUIfly and 9.6 million euros (£8.23 million) for HLX," the EU competition enforcer said. The companies will have to repay the money to Austria.
Ryanair said it would fight the EU ruling. TUIfly had no immediate comment.
The case concerns Klagenfurt airport in the south of Austria.
"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.
The Commission also found that aid granted to the airport by its public owners between 2000 and 2011 was in line with EU state aid rules.