Ryanair’s legal action over state aid to Tap Portugal has taken an unexpected turn when it was ruled that the aid did not breach EU rules.
Ryanair’s legal action against the European Commission involved state aid approved for Portugal’s TAP airline amid the Covid pandemic, particularly a €1.2 billion cash injection initiated in June 2020.
Lisbon informed the European Commission about the bailout, which was intended to support TAP for six months, covering July to December 2020.
The General Court initially ruled in favor of Ryanair, citing a lack of clarity on TAP SGPS’s business group affiliation, but a subsequent decision by the Commission on 16 July 2021 reaffirmed the aid’s compatibility with EU rules.
Ultimately, the General Court dismissed Ryanair’s appeal, stating that the Commission’s evaluation covered eligibility criteria and upheld the bailout as meeting common interest objectives.
