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Ryanair Loses Court Challenges To SAS, Finnair State Aid In New Setbacks

Published on Apr 14 2021 11:59 AM in General Industry tagged: EU / Ryanair / European Commission / Finnair

Ryanair Loses Court Challenges To SAS, Finnair State Aid In New Setbacks

Ryanair on Wednesday had another setback in its fight against state aid for rival airlines after Europe's second-highest court again backed EU competition regulators' approval of support for SAS and Finnair.

Europe's biggest budget airline has filed 16 lawsuits against the European Commission for allowing state aid to individual airlines such as Lufthansa, KLM, Austrian Airlines and TAP, as well as national schemes that mainly benefit flag carriers.

The EU competition watchdog has to date cleared more than €3 trillion ($3.6 trillion) to help virus-hit companies across the 27-country bloc. The airline industry has been among the hardest hit due to lockdowns and travel restrictions.

State Aid

The Luxembourg-based General Court said aid granted to SAS and Finnair complied with the bloc's state aid rules.

Its judgments echoed its 17 February ruling upholding state aid granted to rivals including Air France and SAS.

'Given that SAS's market share is much higher than that of its closest competitor in those two member states, the aid does not amount to unlawful discrimination,' the Court said.

Judges said the Finnair state loan guarantee was necessary in order to remedy the serious disturbance in the Finnish economy in view of the importance of the carrier for that economy.

Ryanair said in a statement that it would appeal.

'Today's judgments set the process of liberalisation in air transport back by 30 years,' the company said in a statement.

The cases are T-378/20 Ryanair v Commission and T-388/20 Ryanair v Commission.

Aircraft Delivery

Elsewhere, Ryanair is set to take delivery of its first Boeing 737 MAX airliner following two years of delay caused by the grounding of the jet in the wake of two fatal crashes.

"We're in the next number of days taking the first delivery of our new 737 Gamechanger aircraft," group chief executive Michael O'Leary told CNBC television in an interview on Wednesday, using the marketing tag the Irish airline has given to the MAX.

Ryanair is the largest European customer of the MAX with 210 firm orders.

News by Reuters, edited by Hospitality Ireland. Click subscribe to sign up for the Hospitality Ireland print edition.

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