The EU General Court has dismissed Ryanair’s legal challenge against the financial aid package provided to TAP Air Portugal, Portugal’s national airline. Ryanair had argued that the aid, granted by the Portuguese government, constituted unfair state support and distorted competition within the European aviation market. However, the court ruled in favor of the European Commission’s approval of the aid, stating that the measures taken to support TAP Air Portugal during the COVID-19 pandemic were in line with EU state aid rules.
The aid package, which was part of a broader European Union initiative to assist struggling airlines during the pandemic, was designed to ensure that TAP Air Portugal could continue operations and safeguard jobs within the company. While Ryanair, a low-cost competitor, had contested the fairness of the aid, the court’s decision upheld the validity of the financial support, noting that it was essential for maintaining the airline’s financial stability and ensuring connectivity within the region.
Ryanair’s challenge was based on claims that the financial aid given to TAP Air Portugal put other European carriers at a disadvantage, giving the Portuguese airline an unfair edge in the market. The airline also argued that the aid package allowed TAP to continue operating at a loss, distorting market conditions and preventing fair competition. However, the EU General Court determined that the support measures were necessary and complied with EU regulations.
This ruling is a significant win for TAP Air Portugal and the European Commission, as it reinforces the legality of the financial assistance provided to airlines during the pandemic. While Ryanair has expressed disappointment with the decision, it highlights the ongoing tensions within the European aviation industry regarding state aid and competition rules. The case also underscores the challenges faced by airlines in navigating the complex regulatory landscape during times of crisis.
Following the dismissal of the challenge, TAP Air Portugal can now move forward with its recovery efforts, supported by the financial package, as it works to rebuild its operations and strengthen its position in the European aviation market. Meanwhile, Ryanair may explore other avenues to address its concerns over state aid in the aviation sector.
