EU court rejects Ryanair appeal over state aid to Austrian Airlines

Europe’s top court rejected Ryanair’s appeal against a €150 million ($162.6 million) subordinated loan given by Austria to Austrian Airlines on Monday, a subsidiary of Lufthansa, during the COVID-19 pandemic. The decision upholds the European Commission’s initial approval of the aid.

“The Court of Justice confirms the lawfulness of the subordinated loan of 150 million euros granted by Austria to Austrian Airlines in the summer of 2020,” the judges at the Luxembourg-based court stated.

The legal challenge, filed under the case name C-591/21 P Ryanair and Laudamotion v. Commission, is part of Ryanair’s broader effort to contest state aid provided to rival airlines during the pandemic.

Ryanair argued that such financial support distorted competition within the EU’s single market.

Ryanair has previously criticised the European Commission for allowing what it considers unfair state aid to national carriers. Despite this setback, the budget airline has vowed to continue its fight against what it perceives as anti-competitive practices in the aviation industry.