Ryanair wins another court case – Air France state aid decision annulled

The European Union’s General Court of Justice has annulled the French state aid package provided to Air France in 2020 and 2021. In a complaint filed by Ryanair and its subsidiary Malta Air, the General Court said on Wednesday that it can’t be ruled out that not just Air France, but also KLM and the holding Air France-KLM have benefitted from the French aid under the EU Temporary Framework. The European Commission can appeal today’s ruling. 

In April 2020, weeks after the first wave of Covid paralyzed the airline industry, the French government announced that it would guarantee 90 percent of a €4.0 billion loan that was provided by a consortium of banks, plus €3.0 billion as a shareholder loan. At the time, the French State owned 14.3 percent of Air France. The package was approved by the European Commission in May, as it qualified for the Temporary Framework for state aid measures to support companies during the pandemic.

The French package was conditional to benefit only Air France, not the Air France-KLM holding or KLM, as the Dutch government was preparing its own aid package. This was formalized in July 2020. However, in December 2020, the EC corrected its decision, as the original text referred to “Air France Group” instead of just “Air France.”