LOT files complaint regarding Modlin airport to UOKiK – media

According to the Polish Press Agency PAP, state-run airline LOT filed a complaint to the antitrust watchdog UOKiK, regarding airport’s Modlin’s possible abuse of dominant position. “The activities of the airport led to the situation where the public airport operator guaranteed conditions to one carrier that eliminated competition, which should never take place in the light of the principle of equal treatment of public airport users,” LOT wrote in a letter obtained by PAP. LOT is referring to Modlin’s deal with low-cost airline Ryanair, which is the sole airline operating at the airport. The state-owned airline claims that the deal gives its Irish competition “monopolistic access to airport infrastructure on preferential terms, while the facility is losing money.” LOT states that since Modlin is owned by the state, public money which is transferred to the airport, eventually ends up in Ryanair, while deepening Modlin losses. In addition, LOT indicates that the mutual cooperation agreement between Modlin airport and Ryanair “which no one has seen,” is constructed in such a way that the structure of the pricing for using the airport means that Ryanair is earning more and more every year while being a monopolist. According to press reports, this contract is valid until 2023 and Ryanair earns about €20 million annually on passenger transport to and from Modlin, while the airport’s losses for 2016, amounted to PLN 122.7 million. Modlin airport is owned by the Military Property Agency (34.43 percent stake), state-controlled Państwowe Porty Lotnicze (PPL) (30.99 percent), the Marshall of Mazowieckie voivodship (30.37 percent) and the mayor of Nowy Dwór Mazowiecki (4.81 percent). The airport seeks funds for further development and wants to issue PLN 60 million in bonds to get financing, but PPL has blocked all the attempts to do so. The Marshal of the Mazowieckie Voivodship, Adam Struzik, commented on the letter by saying that he is “observing with great concern the steps taken by PPL towards Modlin.” Last year, Modlin serviced nearly 3 million passengers.