Ryanair welcomes EU Court rulings on Air France-KLM And TAP state aid

Ryanair welcomed the EU General Court’s rulings that State aid measures favoring Air France-KLM and TAP were in breach of EU law.  The enormous amounts of State aid received by each airline are set out below:

Airline
Air France-KLM 3.4 billion
TAP 1.2 billion

While the Covid-19 crisis has caused damage to all airlines that contribute to the economies and the connectivity of the Netherlands and Portugal, the governments of these countries decided to support only their national flag carriers. Ryanair appealed the European Commission’s approvals of these illegal State subsidies to the EU General Court in 2020.

Ryanair’s spokesperson said:

“One of the EU’s greatest achievements is the creation of a single market for air transport.  The European Commission’s approvals of State aid to Air France-KLM and TAP went against the fundamental principles of EU law and reversed the clock on the process of liberalisation in air transport by rewarding inefficiency and encouraging unfair competition. 

During the Covid-19 pandemic over €30 billion in discriminatory State subsidies has been gifted to EU flag carriers.  Unless halted by the EU Courts in line with today’s rulings, this State aid spree will distort the market for decades to come.  If Europe is to emerge from this crisis with a functioning single market, airlines must be allowed to compete on a level playing field.   Today’s rulings in 2 of more than 20 appeals filed to date before the General Court are an important victory for consumers and competition.

Discriminatory State subsidies given by EU Member States or planned to be given are set out here:

Air France-KLM €14.4bn
Lufthansa Group €11bn
Alitalia €3.5bn
SAS €1.3bn
TAP €1.6bn
Finnair €1.2bn
Norwegian €0.8bn
LOT €0.65bn
Condor €0.6bn
Air Europa €0.5bn