Ryanair has won its legal challenge against Italian state aid given to airlines during the COVID pandemic.
On May 24, 2023, the European Court of Justice decided to annul the European Commission’s clearing of the Italian state aid.
Ryanair argued that the Italian government granted a 鈧130 million ($160M) aid package only to airlines holding an operating license issued by Italy.聽
鈥淭he General Court annuls the Commission精东影业 decision to approve an aid measure consisting in subsidies paid by Italy to Italian airlines in the context of the COVID-19 pandemic,鈥 a from the Court of Justice read.聽
According to the Irish Times, when the Commision was told of the Italian government精东影业 subsidy program in October 2020, no objections were raised.
Ryanair launched legal action, believing that the aid violated principles of European law.
Ryanair said governments, including Italy, 鈥渞ushed through discriminatory subsidy schemes limited to their own former flag carriers鈥.
The low-cost carrier argued that 鈥淩yanair is Italy精东影业 largest airline yet was excluded by the Italian government from these schemes鈥.
Ryanair has launched a number of legal challenges over EU subsidies granted during the COVID pandemic.
The judgment follows on from the EU General Court精东影业 recent annulments of the European Commission精东影业 clearances of aid packages to Lufthansa and to SAS.
鈥淥ne of the EU精东影业 greatest achievements is the creation of a single market for air transport. The European Commission精东影业 approval of the aid scheme limited to airlines with an operating license issued by the Italian State went against the fundamental principles of EU law,鈥 a Ryanair spokesperson said.
They added: 鈥淭he 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. The Court精东影业 intervention is a triumph for fair competition and consumers across the EU.鈥澛犅犅
