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Image header Agence Europe
Europe Daily Bulletin No. 13144
Contents Publication in full By article 17 / 29
ECONOMY - FINANCE - BUSINESS / State aid

European Commission partially withdraws its decision on Italian illegal aid to airlines in Sardinia

The European Commission announced on Friday 17 March that it had partially withdrawn a 2016 decision ordering Italy to recover illegal aid granted to some airlines operating in Sardinian airports.

This decision follows a judgment of the Court of Justice partially annulling the Commission’s 2016 decision (see EUROPE 13065/25).

In July 2016, the Commission found that aid granted by Italy to certain airlines operating in Sardinian airports was incompatible with EU State aid rules.

Four airlines - easyJet, Volotea, Ryanair and Germanwings - have appealed the Commission’s decision.

In May 2020, the General Court upheld the Commission’s decision (for easyJet, Volotea and Germanwings). In November 2022, upon further appeal by easyJet and Volotea, the Court of Justice partially annulled the Commission’s decision on the grounds that it had not demonstrated that Italy had granted an undue advantage to easyJet and Volotea. Ryanair’s appeal against the Commission’s decision is pending before the General Court.

The Commission has thus partially withdrawn its 2016 decision, insofar as it concerns easyJet and Volotea. Similarly, the Commission has decided to withdraw its decision as far as it concerns Ryanair.

The Commission will now re-examine the Italian State aid granted to easyJet, Volotea and Ryanair under EU State aid rules in view of the guidance provided by the Court of Justice. In particular, it will assess whether the aid granted to these airlines does not go beyond what a private operator would be prepared to offer under the same circumstances (the ‘market economic operator principle’), in accordance with the methodology established by the Court of Justice in its judgment.

Link to the case: https://aeur.eu/f/5vs (Original version in French by Lionel Changeur)

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