The EU General Court has nullified the European Commission’s decisions approving financial aid given by France to Air France-KLM and its subsidiary Air France during the Covid-19 pandemic. This aid, contested by Ryanair and Malta Air as breaching European competition laws, was annulled as the Court found it benefited entities beyond Air France, impacting the entire Air France-KLM group.
The aid, which included a substantial loan guarantee and shareholder loan, was initially approved by the European Commission in separate instances for Air France and then Air France-KLM, excluding other entities within the group. However, the Court determined that the aid benefited not just Air France but also Air France-KLM and its Dutch subsidiary KLM, leading to the annulment of the Commission’s decisions.
Air France-KLM has reimbursed the aid following the Court’s decision and is assessing the implications, considering a possible appeal to the Court of Justice of the European Union.
This decision echoes a similar ruling in May, where the General Court annulled the European Commission’s authorisation of a recapitalisation plan for Lufthansa by the German State amid the Covid crisis, following an appeal by Ryanair and Condor.
Ryanair welcomes EU Court rulings on Air France-KLM state aid
Ryanair welcomed the EU General Court’s rulings that € 7 billion Covid-19 state aid granted to Air France-KLM in 2020 and € 4 billion in 2021 was illegal. Ryanair now calls on the European Commission to order France to immediately recover this multi-billion-euro illegal State aid package from Air France-KLM and impose adequate remedies to repair at least some of the damage to competition done by this massive State bailout.