The European Commission (EC) says it has referred France to the European Court of Justice (ECJ) for failing to recover almost EUR10 million in illegal state aid from Ryanair (FR, Dublin International) and Transavia France (TO, Paris Orly) within the specified four month time frame.

In July 2014, the EC ruled that Ryanair, its subsidiary Airport Marketing Services (AMS), and Transavia had unfairly benefited from various contractual and marketing arrangements with the French airports of Pau, Nîmes Garons, and Angoulême during their respective periods of operations there.

The Commission claimed that the airlines had paid less than the additional costs linked to their presence in the airport which therefore constituted an unfair economic advantage.

France was directed to recover a total of EUR9.97 million (USD10.93 million) constituting EUR0.87 million for Angoulême (from Ryanair and AMS jointly); EUR2.8 million for Pau (EUR0.42 million from Ryanair, EUR1.97 million from Ryanair and AMS jointly, and EUR0.43 million from Transavia); EUR6.3 million for Nîmes (from Ryanair and AMS jointly).

The EC subsequently gave Paris until the end of October 2014 to recover the funds.

However, it has since transpired that the French authorities have been unable to recover any funds as all three defendants have appealed the decision.

Under French law, a claim cannot be recovered while an appeal is in progress, and as such the EC has since decided to refer the matter to the ECJ where, under EU regulations, France may face penalties for failure to comply with the order.