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 January, 2007 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 Challenges Illegal Labour Decree in France Ryanair, Europe's largest low fares airline, today (Wednesday, 3rd January 2007) announced that it has filed a legal action against the French Government regarding an unlawful labour decree recently adopted in France. This decree is contrary to the European free market for airline services and is a clear attempt to protect Air France from competition. Commenting today, Ryanair's Head of Regulatory Affairs and Company Secretary, Jim Callaghan, said: "Ryanair has filed a legal action in the French Conseil d'Etat requesting it to overturn this unlawful and anticompetitive labour decree. The decree tries to force foreign airlines to apply French labour laws when they base aircraft in France. This is contrary to European laws on free movement of labour and services and the freedom of establishment and is also contrary to the liberalised air transport market. "This decree is clearly designed to discourage foreign airlines from establishing a base of operations in France in order to compete with the high fare monopoly, Air France. "Ryanair has also filed a complaint to the European Commission calling on them to overturn this unlawful labour decree" . Ends. Wednesday, 3rd January 2007 For reference: Peter Sherrard - Ryanair Pauline McAlester - Murray Consultants Tel: +353-1-812 1228 Tel: +353-1-498 0300 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: 03 January 2007 By:___/s/ James Callaghan____ James Callaghan Company Secretary & Finance Director