On Monday 29 July, the Court of Justice of the EU dismissed the action brought by the airlines Ryanair and Laudamotion against the European Commission’s approval of a subordinated loan granted by Austria to Austrian Airlines in the summer of 2020.
On 23 June 2020, Austria notified the European Commission of aid of €150 million for Austrian Airlines, part of the Lufthansa Group, in the form of a subordinated loan convertible into a grant to compensate for the damage caused by the Covid-19 pandemic.
The Commission approved this aid on 6 July 2020. Ryanair and Laudamotion then unsuccessfully challenged this decision before the General Court of the European Union.
On 14 July 2021, the General Court dismissed their appeal, confirming that the aid did not constitute overcompensation for the Lufthansa Group.
Ryanair and Laudamotion then appealed against the judgment of the General Court to the Court of Justice.
The European Court of Justice rejected this appeal and upheld the European Commission’s decision, pointing out that a Member State may grant aid to a single undertaking for objective reasons, but also that Ryanair and Laudamotion had not proved that the aid constituted an obstacle to the freedom of establishment and the freedom to provide services.
To see the judgment: https://aeur.eu/f/d5y (Original version in French by Pauline Denys)