|
Dublin-based low-cost airline Ryanair Holdings PLC suffered a legal defeat before the EU’s General Court on Tuesday, which ruled that Italian state aid to struggling airlines during the coronavirus pandemic was in line with EU law. The ruling can still be appealed before the European Court of Justice, the bloc’s highest court. Rome granted a total of €130 million in aid to Italian airlines during the 2020 pandemic. This was intended to compensate the airlines for losses incurred as a result of travel restrictions. The European Commission gave the go-ahead for the measure. The commission, the EU’s competition watchdog, is charged with assessing whether member state subsidies for domestic firms distort competition within the bloc’s common market. Ryanair challenged this approval and initially succeeded in its case before the General Court in 2023. However, the ECJ overturned the ruling, sending the case back to the General Court for a new ruling. Italy later extended the aid scheme and increased the budget by €100 million. Ryanair also challenged this before the EU court - unsuccessfully. The Luxembourg-based judges ruled that the requirement that airlines hold an Italian operating licence to qualify for aid did not constitute unlawful discrimination. They noted that the criterion was specifically aimed at those companies hardest hit by Covid-19 travel restrictions in Italy. The case is one of many in which Ryanair has taken action against state aid granted to competitors. In April, the ECJ declared a German multibillion-euro aid package for Deutsche Lufthansa AG to be invalid. Ryanair shares fell 3.4% to €26.54 each on Wednesday morning in Dublin. source: dpa Copyright 2026 Alliance News Ltd. All Rights Reserved.
|
