Summary
- Ryanair wins lawsuit against illegal state aid for Air France-KLM, calling it a triumph for fair competition and consumers within the EU.
- The airline claims over €40 billion in discriminatory state subsidies got to inefficient flag carriers, violating EU laws.
- Ryanair has had mixed results with other lawsuits against Swedish Airlines, Lufthansa, Finnair, and Condor.
The pandemic halted aviation worldwide and resulted in lots of airlines closing their doors, while others operated at a major loss but managed to remain afloat. Nevertheless, many flag carriers operating at a loss or near bankruptcy were bailed out by the state, a move that irked many smaller airlines.
Ryanair was certainly one of the airlines that felt slighted by the preferential treatment and filed 16 lawsuits against the European Commission for its approval of state aid for airlines, claiming that the bailouts were The airline had mixed success with the lawsuits, but this ruling is a giant win.
Illegal bailouts for Air France-KLM
In the course of the pandemic, the French government authorized bailouts value €11 billion to Air France-KLM. The bailouts of €7 billion and €4 billion were awarded in 2020 and 2021, respectively.
Photo: Markus Mainka | Shutterstock
In 2021, the European Union (EU) General Court sided with Ryanair and ruled that the help package was illegal. Nevertheless, the choice was largely symbolic, and any annulments or repayments were deferred until the EU Commission could overturn the choice. Now that the European Commission has agreed with the ruling, it must take motion and implement the repatriation of funds.
Ryanair said this of their statement in regards to the victory:
Today’s judgments confirm that the Commission must act as a guardian of the extent playing field in air transport and can’t log off on discriminatory state aid issued by national governments. The Court’s intervention is a triumph for fair competition and consumers across the EU.”
In keeping with Ryanair, over €40 billion in discriminatory State subsidies got to a privilege other airlines didn’t have. These flag carriers wouldn’t have survived without these bailouts, and a few of which were awarded in violation of EU laws.
The status of the opposite cases
Ryanair filed cases against Swedish Airlines, Lufthansa, Finnair, and other flag carriers. The airline has had mixed results with the legal procedures.
Photo: Craig Larsen | Boeing
The airline recently lost its case against Finnair after the European General Court (EGC) dismissed it, stating that the help package of over €1 billion was legal. The airline also lost the lawsuit it filed to dam an aid package of €321.2 million for German leisure carrier Condor.
Ryanair has also criticized the inaction of the European Commission’s Directorate General for Competition. It says the illegal state packages damage the competition and will harm consumers for a long time to are available in the best way of high ticket prices and fewer selection.