On Wednesday 14 April, the European General Court rejected the actions (Cases T-378/20 Ryanair DAC v Commission and T-379/20 Ryanair DAC v Commission) brought by Ryanair to annul the European Commission’s decisions concerning Swedish and Danish aid measures in favour of the airline Scandinavian Airlines System SAS AB in the context of the Covid-19 pandemic.
In response to the pandemic, Denmark and Sweden notified the European Commission in April 2020 of separate aid packages to assist SAS AB (SEK1.5 billion each). These measures sought to smooth out the damage caused by the cancellation and rescheduling of flights due to health restrictions. This aid was recognised by the European Commission as compatible with EU rules, a decision which Ryanair is contesting. In the Irish company’s view, these measures discourage them from setting up in Denmark or Sweden and providing services there.
For the General Court, the Commission’s decision is in line with the Treaty on the Functioning of the EU as regards aid compatible with the internal market to make good the damage caused by natural disasters or exceptional occurrences (Art 107, § 2b). The measures are considered by the General Court to be proportionate in view of the evolving nature of the pandemic. The General Court further argues that the difference in treatment is “appropriate”, given that SAS has the largest market share in Denmark and Sweden, which is significantly higher than the other competitors.
Finally, the General Court rejects any possible violation of the principle of non-discrimination. Any individual aid is inherently discriminatory. To call into question this aid on the grounds that it is discriminatory would be to call into question all individual aid.
Thus, for the first time, the EU General Court confirms the legality of individual aid measures adopted to provide relief from the consequences of the pandemic. (Original version in French by Pascal Hansens)