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Ryanair gets rare wins in EU court over state aid for KLM, TAP

Article content But KLM, the Dutch arm of Air France, said the judgment was of no consequence as the state aid will not have to be repaid until the Commission has a chance to review the decision. TAP declined to comment when contacted by Reuters. Portugal’s Prime Minister Antonio Costa told reporters the decision was preliminary and the aid was justified in view of the impact of the pandemic. “Given the crisis that hit the aviation sector around the world, it was unthinkable for the European Commission not to lift restrictions on state aid,” he said. “There is no reason to believe their legal experts did not study the matter well.”

Court Decides State Aid For Air France-KLM & TAP Broke Rules

Court Decides State Aid For Air France-KLM & TAP Broke Rules 3 minute read The European Union (EU) General Court has determined that state aid granted to Air France-KLM and TAP violated EU rules. Europe’s second-highest court annulled approval for the aid packages, citing a lack of justification and reasoning from the European Commission. However, the annulments and cash repayments will be suspended until further rulings are made by the European Commission. Air France-KLM and TAP were granted a total of 4.6 billion euros ($5.6 billion) in state aid. Photo: KLM EU General Court annuls approval of state aid The Luxembourg-based General Court has ruled that 3.4 billion euros ($4.15 billion) in aid for Air France-KLM and 1.2 billion euros ($1.46 billion) in aid for TAP went against EU rules on state aid. Both airlines were granted large cash injections in 2020 to help them stay afloat.

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