The low-cost airline Ryanair has gone to court against various state aid granted to some airlines during the corona pandemic. Success varies. Now the EU court has ruled that the approval that went to Air France-KLM was unlawful.

Not surprisingly, Ryanair is pleased about this. The low-coster had sued against the approval of seven billion euros in COVID-19 support for Air France-KLM in 2020, which was followed by a further four billion euros in 2021, with both payments having been approved by the European Commission. The legal remedy taken by Ryanair was explicitly directed against the approval.

The EU court's reasoning states, among other things: "If there are concerns about the effects of cumulation of state aid within the same group of companies on competition, it is the Commission's responsibility to monitor the connections between the companies belonging to this group with particular vigilance to consider".

A spokesman for Ryanair Group reacted to the ruling: “This decision is one of the EU's greatest achievements and contributes to the creation of a true internal market for air transport. The European Commission's approval of French state aid to Air France-KLM violates the fundamental principles of EU law, such as the principle of non-discrimination on grounds of nationality. Today's rulings confirm that the Commission must act as a guardian of a level playing field in air transport and cannot approve discriminatory state aid granted by national governments. The court’s intervention is a triumph for fair competition and consumers across the EU.”

However, the process is far from completely over, as Air France-KLM now has the opportunity to appeal the decision. The case would then be referred to the European Court of Justice. The Franco-Dutch group said in an initial statement that it had not yet decided whether or not it would take legal action.

Some time ago, the EU court also declared the aid money that had been paid out to Lufthansa, but has since been returned for unlawful. When approving it, the EU Commission did not check whether the Kranich Group actually needed the money or whether alternatives were not available on the capital market. Lufthansa has appealed the ruling, and a decision from the ECJ is still pending.