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Ryanair calls German state's market intervention illegal

The German government's 9-billion-euro bailout package to rescue Lufthansa will massively distort competition, therefore it is "illegal", Ryanair CEO Michael O'Leary said on Tuesday. Ryanair will contest Germany's state-sponsored rescue package for the German airline at the EU's Competition Authority, Irish public service television RTE reports.

Ryanair will contest Germany's 9-billion-euro bailout package for Lufthansa, the budget airline's group CEO Michael O'Leary said in a statement today. According to O'Leary, the government-backed aid will allow Lufthansa to "engage in below-cost selling" and make it harder for Ryanair, its Laudamotion subsidiary and rival low-cost carrier EasyJet to compete.

"Ryanair will appeal against this latest example of illegal state aid to Lufthansa, which will massively distort competition and the level playing field into provision of flights to and from Germany for the next 5 years", O'Leary writes in the statement. The appeal can be submitted to the EU's Competition Authority before the European Commission discusses the German government's rescue package.

Meanwhile, Ryanair has welcomed Spain's plans to reopen tourism and the country's airports from 1 July. The airline plans to restore 1,000 flights a dayby July, around 40 per cent of its normal activity. In addition to Spain, Italy, Greece, Cyprus and Portugal have already indicated that they would open their hotels and beaches during the holiday season.

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