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Ryanair plane impounded in France over unrefunded subsidies

A London-bound Ryanair plane with 149 passengers on board was seized by the French authorities at Bordeaux airport on Friday because the Irish low-cost airline had failed to repay more than 500,000 euros it had received in undue subsidies from local government, which it finally settled several hours later.

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Ryanair has been forced to pay the French government 525,000 euros to release one of its planes after it was impounded at Bordeaux airport in a decade-long legal battle over illegal subsidies, reports The Guardian.

French officials seized the aircraft on Thursday ahead of a planned flight to Stansted and forced 149 passengers to disembark.

The French civil aviation authority said it was “regrettable that the state was forced” to seize the plane, but that it took the measure because the low-cost airline had repeatedly ignored demands to repay subsidies a regional government handed to Ryanair.

The European commission ruled that about 1 million euros of subsidies paid to Ryanair in return for it providing flights from Angoulême, 80 miles (130km) north-east of Bordeaux, to London between 2008 and 2009 were illegal.

Ryanair was ordered to repay all the money, which the commission said gave the airline an unfair advantage. But the French government said Ryanair had only paid back half the money, so it seized the plane and demanded the balance. The airline paid the bill on Friday.

Read more of this report from The Guardian.