By Sergio Goncalves LISBON, March 19 (Reuters) - Ryanair has denied allegations that it received illegal subsidies from the Portuguese archipelago of the Azores as part of a deal to offset airport
Ryanair Denies Illegal Subsidy Deal With Azores Government Amid Police Probe
Allegations and Investigation Into Ryanair and Azores Subsidy Deal
By Sergio Goncalves
Background of the Allegations
LISBON, March 19 (Reuters) - Ryanair has denied allegations that it received illegal subsidies from the Portuguese archipelago of the Azores as part of a deal to offset airport fees it pays in the islands.
Police Investigation Details
Portuguese police on Tuesday searched public entities and law firms in the Azores and Lisbon as part of a probe into whether the Azores struck an agreement with the airline that favoured it through the improper awarding of contracts to promote the region abroad, which investigators say may have served as a covert subsidy.
Ryanair's Response
Ryanair "does not have an agreement with the Azores," the Irish airline said in a statement late on Wednesday.
It said it had already announced in November that it would cancel its routes to the Azores, citing high fees imposed by airport operator ANA and a lack of government action.
Wider Context of Route Cancellations
Ryanair has cancelled routes in several European countries, including Spain, Austria and Belgium, over what it says are "excessive fees" levied by airport operators.
Details of the Alleged Scheme
Police said the alleged illegal financing could involve several crimes, including subsidy fraud and abuse of power by public officials.
Role of Intermediaries and Government Officials
Pedro Fonseca, deputy director of the criminal police, told TV channel RTP Acores that Ryanair may have received public subsidies since 2023 through fictitious financing contracts intended to offset airport fees in the Azores.
Private Association as Intermediary
The scheme involved a private association serving as an intermediary between the regional government and Ryanair, he said.
Government and Police Actions
A director at the department of planning and structural funds in the regional government said on Tuesday the searches targeted documents related to tourism promotion and that full cooperation with the police was being provided to "ensure maximum transparency in this process".
Police said five people had been formally charged, but did not identify them.
(Reporting by Sergio Goncalves. Editing by Charlie Devereux and Mark Potter)
