State Aid – Ryanair wins Court battle – For now

Ryanair has welcomed the EU General Court’s rulings that State aid measures favouring KLM and TAP were in breach of EU law.  Air France-KLM received €3.4bn and Brazilian-owned TAP Air Portugal €1.2bn

While the Covid-19 crisis has caused huge damage to all airlines operating into The Netherlands and Portugal, the governments of these countries decided to support only their national flag carriers. Ryanair appealed to the European Commission claiming illegal State subsidies.

Ryanair’s spokesperson said: “One of the EU’s greatest achievements is the creation of a single market for air transport.  The European Commission’s approvals of State aid to Air France-KLM and TAP went against the fundamental principles of EU law and reversed the clock on the process of liberalisation in air transport by rewarding inefficiency and encouraging unfair competition.

The Luxembourg-based General Court said that the effects of the annulments would be suspended until the Commission makes a new decision on the aid.

The body’s competition authority will examine the findings.

KLM, which gained €3.4bn in funding, brushed off the morning’s decision, saying it had “no consequences” for the company.

www.ryanair.com

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