Ryanair has won its challenge against the European Union's (EU) Covid-19 state aid granted to rival Air France-KLM. The EU General Court has ruled that the grants of €7 billion in 2020 and €4 billion in 2021 to Air France-KLM was illegal.
Ryanair has called on the European Commission to order France to immediately recover the now-ruled illegal state aid package from Air France-KLM and impose “adequate remedies to repair at least some of the damage to competition done” by the payout.”
An unnamed Ryanair spokesperson said in a press release: “The EU Commission’s spineless approach to state aid since the beginning of the Covid-19 crisis allowed member states to write open-ended cheques to their inefficient zombie flag carriers in the name of faded national prestige.”
The spokesperson added: “During the Covid-19 pandemic over €40bn in discriminatory state subsidies was gifted to EU flag carriers.” The EU court has previously ruled that Covid-19 state aid received by SAS, Lufthansa, and certain Italian airlines were unlawful.
The spokesperson said: “Undistorted competition eliminates inefficiency and benefits consumers through low fares and choice. Unjustified subsidies, on the other hand, encourage ineffectiveness and will harm consumers for decades to come.”