Ryanair’s Challenges to Alitalia and Brussels Airlines Aid Rejected by EU Court

The General Court of the European Union has dismissed legal challenges brought by Ryanair against the state aid provided to Alitalia and Brussels Airlines during the Covid-19 pandemic. The court ruled on October 18, 2023, that the financial assistance received by the two carriers in 2020 was compatible with the internal market of the European Union.

In the case of Alitalia, the Italian carrier received two separate aid measures totaling EUR 199.45 million in 2020, which the European Commission approved in September of that year. The aid covered the period from March 1 to June 15, 2020, and a subsequent period from June 16 to October 31, 2020. Ryanair challenged these decisions, arguing that a formal procedure to assess compatibility had not been initiated.

The court emphasized Alitalia’s significant role in global connectivity, serving over 100 destinations and employing more than 11,000 staff. It noted that Alitalia was involved in repatriation flights, maintained essential services, and operated public service obligation (PSO) routes in Italy, justifying the Italian government’s decision to provide aid.

In the case of Brussels Airlines, the court rejected Ryanair’s challenge to the Belgian state aid package of EUR 300 million approved by the European Commission in August 2020. The court concurred with the commission’s view that the aid aimed to support an essential company during the pandemic without the need for an in-depth investigation.

Ryanair expressed dissatisfaction with the court’s rulings, stating that the decisions favored specific flag carriers over other EU airlines affected by the Covid-19 crisis. The airline highlighted previous rulings in May 2023, where the EU General Court deemed state aid received by SAS Scandinavian Airlines, Lufthansa, and certain Italian airlines as unlawful. Ryanair criticized the European Commission for not recovering the unlawful aid and not addressing the damage to competition caused by favoring local airlines.

For further details and updates, refer to reliable news sources.

(Note: The information provided is based on available reports and publicly accessible sources as of the knowledge cutoff date in January 2022.)