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CJEU dismisses Ryanair appeal on COVID aid

The EU’s top court has dismissed appeals brought by Ryanair about aid provided to airlines by the French and Swedish governments during the COVID-19 pandemic.

The European Commission had approved the measures, which were proposed in early 2020.

The lower General Court subsequently rejected a Ryanair challenge to the commission’s decision.

Arguments rejected

The Court of Justice of the European Union today (23 November) rejected all the arguments put forward by Ryanair, and upheld the judgments of the General Court.

“The court reaffirms, in particular, that aid cannot be considered incompatible with the internal market for reasons that are linked solely to whether the aid is selective, or distorts or threatens to distort competition,” the ruling stated.

France’s aid measure involved a deferral of the payment of civil-aviation tax and solidarity tax on airline tickets, which benefited airlines holding a French licence.

Sweden introduced a loan-guarantee scheme of up to five billion Swedish kronor (SEK) to support airlines holding a Swedish operating licence during the pandemic.