A TOP EU court has again annulled a pandemic state aid programme for Air France-KLM that had been challenged by rival Ryanair.

The General Court today ruled that the European Commission “erred” in approving the Dutch government’s financial aid for the Netherlands’ flag-carrier KLM, which forms an alliance with Air France.

The group received €3.4 billion from the Dutch state after the pandemic grounded the aviation sector in 2020 – money that has since been reimbursed, with interest.

The General Court today said the commission “erred in defining the beneficiaries” by excluding the group’s holding company and Air France as recipients of that aid.

The commission, the EU’s powerful antitrust regulator, approved the aid in 2020, but the Luxembourg-based General Court annulled the decision the following year.

The commission then approved the aid again in 2021, which Ryanair challenged.

Ryanair launched multiple challenges against government bailouts for other companies, including German airline Lufthansa and Scandinavia’s SAS during the pandemic.

In 2021, Ryanair estimated that the total state aid to airlines approved by Brussels since the beginning of the pandemic was €30 billion.

The EU court in December last year issued a similar decision, ruling that the commission “erred” in approving the French government’s financial aid for Air France-KLM.

Welcoming the ruling today, a spokesperson for Ryanair said the Commission’s approval of the Dutch state aid to Air France-KLM “went against the fundamental principles of EU law”. 

“Today’s judgement confirms that the Commission must act as a guardian of the level playing field in air transport and cannot sign-off discriminatory State aid issued by national governments,” the spokesperson said. 

“The Court’s intervention is a triumph for fair competition and consumers across the EU.” 

Includes reporting by - © AFP 2024