The Court of Justice of the European Union has dismissed Ryanair’s action against the European Commission's approval of COVID-19 aid granted by Germany to Condor.
The case followed a July 2021 decision by the European Commission to approve Germany’s COVID-19-era financial support to the German leisure airline in the form of two loans backed by state guarantees. The measure aimed to alleviate damage Condor suffered from travel restrictions during 2020.
These two loans were granted to Condor by German bank Kreditanstalt für Wiederaufbau (KfW), with a total nominal amount of €400 million ($464.4 million). The aid element amounted to €144.1 million ($167.3 million).
Ryanair argued that this aid to Condor was unlawful and should have undergone an investigation due to potential incompatibility with EU internal market rules.
"The General Court finds that Ryanair has not demonstrated that it is individually concerned by the Commission's decision, with the result that it cannot challenge the merits of that decision," the court said.
The court upheld the Commission’s assessment that there was a direct causal link between Germany’s pandemic-related travel restrictions and Condor’s financial damage. It also ruled that Condor, though previously a recipient of restructuring aid, was eligible for pandemic-related support under EU rules.
The General Court also rejected Ryanair's claims that the Commission failed to ensure the aid compensated only for COVID-19 travel restriction costs and that it should have questioned the damage quantification for Condor.
This is not the first time Ryanair has challenged state air given to European airlines during the pandemic. In April the airline lost a court appeal against €650 million ($701.2 million) of Polish state aid granted to the country’s flag carrier LOT, after the European General Court sided with EU competition authorities which allowed the cash subsidy.
Similarly, in February, the General Court dismissed Ryanair’s challenge against the European Commission’s approval of €1.2bn ($1.25bn) in rescue aid for TAP Air Portugal during the pandemic.