Proactive Investors - Ryanair (LON:0RYA) is celebrating a favourable EU General Court ruling against the Dutch government's €3.4 billion worth of state aid given to Air France-KLM (LON:0LN7)'s Dutch unit.
Today’s decision marks the second occasion the Irish budget carrier has successfully challenged EU state aid given to its rivals due to the Covid-19 pandemic's severe impact on the airline industry.
EU judges also rejected the EU executive's clearance of state aid for Portuguese carrier TAP, citing "an inadequate statement of reasons”.
Ryanair lost similar state aid challenges against the Danish, Swedish and German governments in 2023.
It is now calling on the European Commission to order the Netherlands to immediately recover what it called an “illegal state aid package” from Air France-KLM.
The carrier has also asked for adequate remedies to repair “at least some of the damage to competition done by this massive state bailout”.
"KLM will study the verdict and will investigate further steps,” the Dutch carrier said in a statement, adding: “KLM repaid the loans relating to the state aid in June, 2022. The credit facility was ended in April, 2023.”
Ryanair has been vocal in its criticism of the European Commission's handling of state aid throughout the pandemic, accusing it of enabling discriminatory practices by allowing member states to provide unchecked financial support to national carriers.
This, Ryanair argues, contravenes the principles of fair competition and the EU's single market regulations.
A Ryanair spokesperson slammed the EU Commission’s “spineless” approach to state aid that allowed member states “to write open-ended cheques to their inefficient zombie flag carriers in the name of faded national prestige”.
“One of the EU’s greatest achievements is the creation of a true single market for air transport,” said the spokesperson. “The European Commission’s approval of the Dutch state aid to Air France-KLM went against the fundamental principles of EU law, like the principle of non-discrimination on the basis of nationality.
“Today’s judgement confirms that the Commission must act as a guardian of the level playing field in air transport and cannot sign-off discriminatory state aid issued by national governments.”
The court’s intervention against the Dutch government “is a triumph for fair competition and consumers across the EU”, said the spokesperson.