On November 6, 2024, the European Court of Justice dismissed the lawsuit brought by low-cost airline Wizz Air against state aid for the Romanian airline Tarom.
The Romanian government had approved a loan of around €2020 million in 2 to compensate Tarom for losses due to pandemic-related restrictions. This aid was approved by the European Commission in February 2022. Wizz Air argued that the aid would distort competition as it affected the market in favour of Tarom. However, the ECJ ruled that the aid was compatible with internal market rules as it helped to ensure the connectivity of Romanian regions and avoid social hardship that could arise from the loss of air connections.
The decision strengthens the right of Member States to grant state aid in times of crisis to maintain air transport infrastructure and essential air connections. It remains to be seen what impact this will have on future competitiveness and market structure in the European aviation sector.
and 