European Court Rejects Ryanair’s Appeal Against SAS State Aid

The Court of Justice of the European Union has upheld the dismissal of Ryanair’s appeal challenging the state aid granted to SAS Scandinavian Airlines by Denmark and Sweden. The aid, totaling SEK 1.5 billion kroner (USD 137 million), was provided as compensation for losses incurred due to the impact of the Covid-19 pandemic.

In its ruling on September 28, the court in Luxembourg deemed Ryanair’s grounds of appeal as unfounded, rejecting all arguments put forward by the low-cost carrier. The decision affirmed the judgments of the European General Court, emphasizing that the aid measures were specifically targeted at SAS and did not violate EU law.

Ryanair had filed the appeal in May 2021, contending that the General Court had made errors in dismissing the case earlier that year. The General Court’s ruling had concluded that the state aid complied with EU regulations, highlighting SAS’s higher market share and greater susceptibility to pandemic-related restrictions compared to its closest competitor in Denmark and Sweden.

The aid, approved by the European Commission on April 15, 2020, took the form of a guarantee on a revolving credit facility. Ryanair has been actively pursuing legal action against the European Commission and several airlines concerning state aid granted by European governments, with over a dozen lawsuits filed to date. The recent decision underscores the regulatory support for targeted assistance to airlines facing substantial challenges during the ongoing aviation crisis.