The General Court of the European Union has ruled against separate challenges from Ryanair concerning state aid received by Alitalia and Brussels Airlines during the Covid-19 pandemic, stating that the aid was compatible with the EU’s internal market.
Alitalia received two aid measures totalling EUR272.47m, which were approved by the European Commission. Ryanair appealed the decisions, arguing that a formal procedure to assess the compatibility of the aid had not been opened.
The court emphasised that Alitalia played a significant role in Italy’s connectivity, serving over 100 destinations and carrying millions of passengers annually. The Italian government chose Alitalia as the sole beneficiary of the aid due to its importance.
The court also rejected Ryanair’s complaint regarding the Belgian state aid package of EUR300m to Brussels Airlines, which aimed to support the essential company during the pandemic. Brussels Airlines has already fully repaid the aid it received.
Ryanair criticized the court’s rulings, stating that EU airlines received less support compared to the respective flag carriers of Belgium, Italy, Estonia, and Latvia. It pointed out that previous rulings found certain Covid-19 state aid to be unlawful.
The European Commission is yet to recover the unlawful aid and take measures to remedy the damage caused by favouring local airlines over other EU airlines, according to Ryanair.
