Europe's second-top court on Wednesday 24 May backed Ryanair's challenge against an Italian state aid, approved by the European Union, for airlines hit by the COVID-19 pandemic, siding again with the Irish airline on this issue.
"Failed To Provide A Statement Of Reasons"
"The Commission failed to provide a statement of reasons for its finding that the measure at issue was not contrary to EU law provisions other than those governing state aid," the Luxembourg-based General Court said on Wednesday 24 May.
Previously Ruled In Ryanair's Favour
Two weeks ago, the court already ruled in Ryanair's favour in cases involving pandemic state aid measures for competitors Lufthansa and SAS.
State Aid To Certain Airlines Holding An Italian Licence
In October 2020, at the height of the COVID-19 pandemic which brought travel to a virtual standstill, Italy had notified the European Commission of a €130 million state aid to certain airlines holding an Italian licence.
"Not Been Done Here"
"According to settled case-law, a decision not to initiate the formal investigation procedure in respect of notified aid must set out the reasons for which the Commission takes the view that it is not faced with serious difficulties in assessing the compatibility of the aid at issue with the internal market," the court said in a statement.
"The General Court finds that that has not been done here."
Case Name
The case is T-268/21 Ryanair v Commission.
The above news was followed by the following update:
UPDATE 2-Ryanair Wins Latest Challenge Against Aid To COVID-Hit Airlines
Ryanair on Wednesday 24 May won its challenge to an EU decision allowing Italian aid to pandemic-hit airlines, the second such victory in two weeks for Europe's largest budget carrier.
The Irish airline has filed more than a dozen lawsuits against billions of euros in what it said was unfair state aid granted to airlines across the 27-country European Union and approved by the European Commission.
The EU's Luxembourg-based General Court on Wednesday 24 May annulled the Commission's clearing of the Italian state aid, saying the competition enforcer had failed to explain in a clear and unequivocal way why it had not opened an investigation and had given its approval.
In October 2020, after the COVID-19 pandemic had brought travel to a virtual standstill, Italy had gained the Commission's approval for €130 million in subsidies to certain airlines holding an Italian licence.
Ryanair welcomed the court's ruling.
"Today's judgment confirms that the Commission must act as a guardian of the level playing field in air transport and cannot sign-off discriminatory state aid under political pressure by national governments," a Ryanair spokesperson said.
Two weeks ago the same court ruled in Ryanair's favour in cases involving pandemic state aid measures for competitors Lufthansa and SAS.
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