Ryanair has claimed another victory as the European Union General Court ruled that “discriminatory” state aid during Covid favoured Italian airlines over other EU carriers.
The government in Rome granted a €130 million aid package only to airlines holding an operating licence issued by Italy.
Although founded in Ireland, Ryanair has grown to become Italy’s largest airline but was excluded from Italian state aid.
Ryanair appealed the European Commission’s approval of the subsidies to the EU General Court in 2021.
The judgment follows the Luxembourg-based court’s recent annulments of the Commission’s clearances of a €6 billion bailout to Lufthansa and €1 billion to SAS.
The low-cost giant hailed the rulings as a victory for the EU internal market but “damning of the European Commission’s head-in-the-sand approach to massive and discriminatory bailouts of ailing flag carriers by EU member states”.
A Ryanair spokesperson said: “One of the EU’s greatest achievements is the creation of a single market for air transport.
“The European Commission’s approval of the aid scheme limited to airlines with an operating licence issued by the Italian state went against the fundamental principles of EU law.
“Today’s judgment confirms that the Commission must act as a guardian of the level playing field in air transport and cannot sign-off discriminatory state aid under political pressure by national governments.
“The court’s intervention is a triumph for fair competition and consumers across the EU.”
They pointed out that more than €40 billion of state subsidies was “gifted” to EU flag carriers.
They spokespersons added: “Unless halted by the EU courts in line with today’s ruling, this state aid spree will distort the market for decades to come.
“Europe’s emergence from the Covid-19 crisis with a functioning single market depends on airlines being allowed to compete on a level playing field.
“Undistorted competition eliminates inefficiency and benefits consumers through low fares and choice. Unjustified subsidies, on the other hand, encourage ineffectiveness and will harm consumers for decades to come.”