Ryanair has welcomed a European court decision to annul billions of euros in state aid provided to Air France-KLM during the pandemic.
The EU General Court ruled in Ryanair’s favour after the budget carrier objected to the European Commission’s approval of €7 billion Covid-19 support granted to Air France-KLM in 2020 and €4 billion in 2021.
Ryanair called on the European Commission to order France to recover the state aid package from Air France-KLM and impose “adequate remedies to repair at least some of the damage to competition done by this massive state bailout”.
The court in Luxembourg, ruling that the state aid was was illegal, said: “Where there are grounds to fear the effects on competition of an accumulation of state aid within the same group, the onus is on the Commission to exercise particular vigilance in examining the links between the companies belonging to that group.”
An appeal, limited to points of law only, may be brought before the higher EU Court of Justice against the decision of the General Court within two months and ten days of notification of the decision.
A Ryanair spokesperson said: “One of the EU’s greatest achievements is the creation of a true single market for air transport.
“The European Commission’s approval of the French State aid to Air France-KLM went against the fundamental principles of EU law, like the principle of non-discrimination on the basis of nationality.
“Today’s judgments confirm that the Commission must act as a guardian of the level playing field in air transport and cannot sign-off discriminatory state aid issued by national governments.
“The court’s intervention is a triumph for fair competition and consumers across the EU.”
They added: “Today’s judgments underline the need for the European Commission to immediately act to recover these illegal state aid packages and order remedies to restore at least some of the damage done to competition.
“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.”