Good news and bad news for our friends, Ryanair. On the one hand, they recently reported a 44 percent year-on-year increase of passenger numbers. They say that they handled 2.141 million passengers in August 2003 compared to 1.487 million a year earlier. Internet bookings rose 2 points to 94 percent. The average load factor (the average number of seats sold as a proportion of seats available on flights) fell by five percent to 78 percent in the three months to June, while yields fell 14 percent. Ryanair blamed the decline on the launch of 50 new routes, the weakness of sterling against the euro, the one-month closure of buzz, the former budget unit of KLM Royal Dutch Airlines it snapped up earlier this year, and cheaper fares.

The bad news is that a French court has ruled that subsidies it receives in Strasbourg are illegal. Air France's subsidiary Brit Air filed the case against Ryanair, whom they said were receiving unfair subsidies. Ryanair said that when the Strasbourg Chamber of Commerce approached Ryanair requesting it fly to Strasbourg, Air France was only carrying around 3,000 passengers per month on the London route and in August 2003, Ryanair carried over 18,000 passengers on this route. “Air France has been downgrading services from Strasbourg and other French regional airports, having withdrawn from 10 direct international routes from Strasbourg alone in the past 8 years,” said a spokesperson.

“Ryanair's partnership with the Strasbourg Chamber of Commerce led to 130,000 additional visitors to Strasbourg and the Alsace Region, resulting in increased revenues to the airport and increased tourist spend to the region, along with the creation of approximately 200 new jobs. All this will be lost until our appeal has been heard,” they said.

As a result, Ryanair have suspended flights to Strasbourg and switched to nearby Baden Baden across the border in Germany. (Oh yes, another case of flying to a different country!)

Another law case is pending. Ryanair are waiting to hear about a deal it has with Charleroi Airport, near Brussels, where it has established one of its bases.