MOSCOW (Pakistan Point News / Sputnik - 17th February, 2021) The Luxembourg-based General Court of European Union on Wednesday rejected the lawsuit by Ryanair, the world's largest low-cost airline, that seeks to halt COVID-19 related state bailouts for rival airlines in Europe.
In 2020, the European Commission loosened the rules of providing state aid to companies amid severe economic impact of the COVID-19 pandemic. As a result, EU countries have offered more than $3.65 trillion in aid to companies in various sectors across the 27-member bloc.
Ryanair has filed 16 lawsuits against the European Commission with the aim to stop the bailouts saying that the state aid gives an unfair advantage to prestigious national flag carriers. On Wednesday, the court, in particular, backed the French program delaying aviation tax payments for companies with a national license.
"The deferral of the payment of taxes introduced by France to support airlines which hold a French licence amid the Covid-19 pandemic is consistent with EU law. That aid scheme is appropriate for making good the economic damage caused by the Covid-19 pandemic and does not constitute discrimination ... The airline Ryanair brought an action for the annulment of that decision, which is dismissed by the General Court of the European Union in its judgment today," the court said.
Ryanair has vowed to appeal the ruling at the EU's top court, arguing that the French and Swedish programs mainly benefited Air France-KLM and SAS over all other EU airlines.
