State aid: EU court dismisses first Ryanair lawsuits

State aid: EU court dismisses first Ryanair lawsuits

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The Irish low-cost airline Ryanair suffered a setback before the European Union Court. The preliminary stage of the ECJ ruled that the approval of state aid to SAS and Air France is lawful. The lowcoster's lawsuit was directed against the EU Commission's green light.

The EU court, which is based in Luxembourg, followed Ryanair's argument that these aid measures are only not available to carriers based in the respective country. "The extension of this aid to companies not based in France, on the contrary, would not have made it possible to achieve the goal of compensating the economic damage suffered by the airlines operating in France so precisely and without the risk of overcompensation," the court said . Ryanair's complaint was also dismissed in the Swedish case.

In an initial reaction, the Irish low-cost airline takes note of the decision. However, it is written that an appeal to the European Court of Justice is reserved, since in Sweden as well as in France access to the aid is reserved to airlines that are based in the respective country. The carrier also writes that the matter will now be referred to the ECJ.

Ryanair portrays Ireland as a poor country

In a broadcast, a Ryanair spokesman said: “One of the EU's greatest achievements is the creation of a true single market for air transport based on the principle of a common EU aviation license - one for each airline. A nationality condition in a state aid system is clearly incompatible with the internal market. Ryanair is a truly European airline. We do not have a rich and powerful “homeland” to subsidize us in difficult times. We also don't want any discriminatory aid. Our instinct in a crisis is to strive for efficiency and cost savings, to offer more routes at lower fares, while remaining the greenest airline in Europe. "

The spokesman also wrote: “During the Covid-19 pandemic, discriminatory government subsidies totaling over EUR 30 billion were given to EU flag bearers. If allowed to do so, the playing field in EU aviation will be skewed for decades, giving chronically inefficient national airlines an edge over their efficient low-fare competitors. We hope that the Court of Justice will overturn the European Commission's assent to the French and Swedish systems to give airlines and consumers a glimmer of hope that national politicians obsessed with their flag bearers will have to be sent back to the drawing board and take advantage of the state Helping wisely to help restore traffic in the post-Covid world rather than saving their preferred airline at the expense of fair competition and consumers. Now is the time for the European Commission to stop giving in to the inefficient bailout policies of national governments and to protect the single market, Europe's greatest asset for future economic recovery. "

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