Ryanair’s appeals regarding financial aid provided to airlines by the governments of France and Sweden during the Coronavirus pandemic have been dismissed by the Court of Justice of the European Union.
The measures, proposed in early 2020 and approved by the European Commission, faced a challenge from the Irish airline at the lower General Court, which also ruled against Ryanair’s objection to the commission’s decision.
On November 23, the EU’s top court rejected all the arguments brought by Ryanair and upheld the judgments of the General Court.
The court reaffirms, in particular, that aid cannot be considered incompatible with the internal market for reasons that are linked solely to whether the aid is selective, or distorts or threatens to distort competition.
The European Commission was notified by France in March 2020, regarding an assistance initiative entailing the deferment of civil aviation tax as well as solidarity tax on airline tickets.
This deferral, which was applicable to airlines with a French license, consisted of the rescheduling of tax payments to commence on January 1, 2021, as well as the distribution of payments over a span of 24 months, until December 31, 2022.
In April 2020, Sweden, in its notification to the Commission, detailed an assistance initiative in the shape of a loan guarantee program, amounting to a maximum of five billion Swedish kronor (SEK). The aim was to provide support to airlines possessing a Swedish operating license amidst the challenges posed by the COVID-19 pandemic.
It took the view that the Swedish aid scheme was presumed to have been adopted in the interest of the European Union. Furthermore, the deferral put in place by France was appropriate to make good the economic damage caused by the Covid-19 pandemic and did not amount to discrimination.
Last month, the Irish airline also failed in EU court challenges to say that the state aid received by two European airlines amid the COVID-19 pandemic was not in line with the EU’s internal market.
The EU court issued a ruling noting that the financial assistance provided to Alitalia as well as the Lufthansa subsidiary Brussels Airlines in the form of loans and recapitalisation amid the pandemic, was deemed compatible with the EU’s internal market.
Through a statement, Brussels Airlines welcomed the decision by the Court of Justice of the European Union regarding the situation.
