On Thursday, Ryanair failed in a legal stand off related to a €10-billion solvency plan for businesses affected by the pandemic in Spain, approved by EU competition regulators four years prior. This lawsuit is among several launched by the airline against competitors who are profiting from government assistance.
The European Commission endorsed the plan in 2020, confirming it adhered to EU regulations. In response to the coronavirus crisis, the commission authorised numerous cash injections across the bloc to airlines and other sectors suffering from the pandemic’s economic impacts.
Ryanair contested the Spanish program in a lower court, but was unsuccessful in 2021. The ruling led them to lodge an appeal with the Court of Justice of the European Union (CJEU), the highest judicial body in Europe, situated in Luxembourg. However, they were disappointed as CJEU judges rejected their argument.
The court supported the decision made by the European Commission to legitimise the solvency fund for crucial Spanish enterprises. According to the court’s ruling, “An equitable equilibrium was achieved between the scheme’s advantageous impacts and its undesirable consequences on the internal market because of its remarkable characteristics and the significance of its objectives. Consequently, it is in the general advantage of the European Union.”
The decision reached is ultimate and adds to Ryanair’s mixed bag of wins and losses in similar cases. It is not eligible for appeal, say sources from Reuters.
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