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EU orders Ryanair, TUIfly to repay illegal Austrian airport aid

BRUSSELS, Nov 11 (Reuters) - EU state aid regulators ordered Irish budget airline Ryanair and German travel company TUI (LSE: 0NLA.L - news) 's unit TUIfly to repay millions of euros in illegal aid given by an Austrian airport.

"Certain airport services and marketing agreements concluded between the airport operator and airlines Ryanair, HLX and TUIfly gave the latter an undue advantage, which cannot be justified under EU state aid rules," the European Commission said on Friday.

HLX merged with Hapagfly in 2007 into the new brand TUIfly.

"The amounts of incompatible state aid are estimated at around 2 million euros for Ryanair, 1.1 million euros for TUIfly and 9.6 million euros for HLX," the EU competition enforcer said. The companies will have to repay the money to Austria.

The case concerns Klagenfurt airport in the south of Austria. The Commission also found that aid granted to the airport by its public owners between 2000 and 2011 was in line with EU state aid rules. (Reporting by Foo Yun Chee; editing by Philip Blenkinsop)