Michael O'Leary, Director General of Ryanair Holdings PLC, to which the operating airlines Lauda, Malta Air, Buzz, Ryanair DAC and Ryanair UK belong, announced on Thursday a lawsuit against the rescue package approved by the EU Commission for competitor Lufthansa. The group wants to go to the European Court of Justice.
“This is a spectacular case in which a rich EU member state ignores the EU treaties for the benefit of its national industry and to the detriment of poorer countries. Under the pretext of Covid-19, the federal government is granting Lufthansa a rescue package of nine billion euros, which, according to the CEO, is not needed at all. In clear violation of European competition rules, Berlin is wasting huge amounts of taxpayers money propping up an uncompetitive airline that should fix its own house instead of running to the government again for help. These and other bailouts will have more devastating effects on the future of European aviation in the long term than the pandemic itself. This bailout will be used to force smaller competitors out of the market, precisely the appalling record of competition violations on the part of Lufthansa. Just last week the Italian press reported that Lufthansa's Air Dolomiti had "teamed up" with three other airlines against low-cost airlines to introduce minimum prices. This follows reports that Austrian Airlines, also owned by Lufthansa, is preparing to set a minimum flight price of 40 euros. In addition to coordinating a state-sponsored price-setting cartel, Lufthansa is threatening to shut down smaller national airlines within the Lufthansa Group as if they were their Belgian, Austrian and Swiss hostages, unless the respective governments pay a ransom. The contrast between Lufthansa and Ryanair couldn't be stronger. Rather than touring Europe's capitals for tax-funded handouts, Ryanair is innovating its way out of the crisis by offering consumers lower fares and connectivity at a time when Europe's regions and cities are in dire need of tourism and local economies. We urge the European Commission to stand by its principles and keep the skies open, fair and competitive. If not, the single market that the EU has successfully built will collapse and European consumers and taxpayers will pay the price. Today's approval of the Lufthansa rescue package by the Commission is a betrayal of the basic principles of EU law. We have no choice but to turn to the ECJ, ”said Michael O'Leary.
In the past few weeks, the Ryanair Group has also announced lawsuits against government aid packages in other countries. Among others in France, the Netherlands, Italy and Scandinavian countries. In the United Kingdom, however, they have taken out loans from the state program themselves.