SECURITIES AND EXCHANGE COMMISSION
 

Washington, D.C. 20549
 


FORM 6-K
 


Report of Foreign Private Issuer
 


Pursuant to Rule 13a-16 or 15d-16
of the Securities Exchange Act of 1934
 


For the month of September, 2008
 
 

RYANAIR HOLDINGS PLC
(Translation of registrant's name into English)
 
 

c/o Ryanair Ltd Corporate Head Office
Dublin Airport
County Dublin Ireland
(Address of principal executive offices)
 
 
 
Indicate by check mark whether the registrant files or will file annual
reports under cover Form 20-F or Form 40-F.
 
 
Form 20-F..X.. Form 40-F.....
 
 

Indicate by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange
Act of 1934.
 
 
Yes ..... No ..X..
 
 

If "Yes" is marked, indicate below the file number assigned to the registrant
in connection with Rule 12g3-2(b): 82- ________
 
 
 

RYANAIR
 
WINS RIGHT TO CHALLENGE EXCESSIVE KNOCK S
UBSIDY

Ryanair, Europe's leading low fares airline, 
won the right 
today (
Tuesday, 
9
th
 September
 2008
) 
to challenge the award of the PSO subsidy on the Knock - Dublin route to Aer Arann. Ryanair is seeking 
an
 explanation why its offer 
of a smaller subsidy, lower fares and triple
 the passenger numbers
 
for the Knock route 
was rejected 
in favour of Aer Arann's larger subsidy, higher fares and fewer passenger numbers.

T
he High Court in 
Ireland
 
has granted Ryanair's application for a judicial review of the decision of the 
Department of Transport following
 the unlawful award of a PSO (Public Service Obligation) contract for the 
Dublin
 to Knock route to Aer Arann, following Cityjet's announcement that it would not serve the route.  
Ryanair
 today underlined that t
he Minister should have called for a new tender process in order
 to comply with European Regulations on the grant of PSOs but failed to do so.

Ryanair had offered to serve this route for a much lower subsidy and with over 3 times the seat capacity but the Department rejected the offer without having carried our a new tender.

Speaking today, Ryanair's Director of Legal & Regulato
ry Affairs, Jim Callaghan, said:

"
Following Cityjet's announcement that it would not fly
 the Dublin - 
Knock route, Ryanair immediately offered to serve this route for a much lower price to the taxpayer and with over 3 times the 
passenger numbers
.  
However the Department rejected this offer and unlawfully granted the PSO to Aer Arann without calling for a new tender.

"
Ryanair has been a vocal critic of the D
epartment for Transport's waste
 of taxpayer funds in the area of PSOs and this is the latest example.  
We are delighted that the High Court has granted our request to challenge this unlawful decision.

"
At a time of economic downturn, it is high time that the Department for Transport stopped wastin
g taxes on grossly inflated PSOs by supporting the subsidy junkie Aer Arann, which does not publish accounts yet continues to receive massive state subsidies. The Department must 
instead cho
o
se the value for money option - Ryanair!"


Ends.
    
    
    
    
    
    
    Tuesday, 9
th
 September 2008


For further information:

Stephen McNamara
 
    
    
    
    
    
Pauline 
McAlester
Ryanair
    
    
    
    
                    
    
Murray
 Consultants
Tel: 00 353 1 812 1212 
    
    
    
    
Tel: 00 353 1 4980 300
 
 
This information is provided by RNS
The company news service from the London Stock Exchange
 

END 
 

SIGNATURES
 

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.
 
 

 

RYANAIR HOLDINGS PLC




Date:  09 September 2008
 

 

By:___/s/ James Callaghan____
   
 

James Callaghan
 

Company Secretary & Finance Director