In the matter of the lawsuits brought by Ryanair against state aid to various airlines, the carrier won the cases of TAP and Air France-KLM. The court of the European Union found in the first instance that the approval granted by the EU Commission does not comply with Union law.
The ruling is particularly exciting because the same court, which was set up as a preliminary stage before the European Court of Justice, has ruled to the disadvantage of the low-cost airline in comparable cases. Although Ryanair always appealed to the European Court of Justice, it was defeated in the first instance.
The decisions in the Air France-KLM and TAP cases are expressly not yet final, because the losing parties can appeal to the ECJ. Ryanair's lawsuits are expressly not directed against the airlines themselves, but against the permits granted by the EU Commission for state aid. To put it simply: the airlines concerned are only "passengers" in the proceedings and do not even have a party position. They have no choice but to wait and see what the judiciary decides.
“One of the EU's greatest achievements is the creation of a single market for air transport. The European Commission's approval of state aid to Air France-KLM and TAP violated fundamental principles of EU law and reversed the process of air transport liberalization by rewarding inefficiency and promoting unfair competition. During the Covid-19 pandemic, discriminatory government subsidies totaling over EUR 30 billion were given to EU flag bearers. Unless the EU courts stay in line with today's rulings, this state aid will distort the market for decades to come. If Europe is to emerge from this crisis with a functioning internal market, airlines must be allowed to compete on an equal footing. Today's rulings in 2 of more than 20 appeals filed in court to date are a major win for consumers and competition, ”said a Ryanair spokesman.
Air France-KLM and TAP initially refused to comment on the recent decisions of the European Union Court.