General Court Dismisses Ryanair’s Action Against Commission Decision Approving Rescue Aid to TAP Air Portugal
Today, the General Court delivered its judgment in a case brought by Ryanair against the European Commission’s 16 July 2021 decision on State aid SA.57369. The decision approved a EUR 1.2 billion rescue aid granted to TAP Air Portugal during the COVID-19 pandemic to support the airline’s operations for six months.
The aid in favor of TAP Air Portugal had been assessed in a previous State aid Decision adopted in June 2020. Ryanair challenged the June 2020 decision (T-465/20). The General Court considered that the Commission had not clarified whether TAP’s parent company, TAP SGPS, was part of a larger business group. This constituted an essential factor in assessing eligibility for rescue aid and therefore the GC annulled the decision in May 2021.
The Commission issued a new decision in July 2021, addressing this issue and reaffirming the aid’s compatibility with the internal market. In November 2021, Ryanair launched an action for annulment of the July 2021 decision (Case T‑743/21). The General Court upheld today the July 2021 decision, affirming that TAP SGPS, the parent company of TAP Air Portugal, qualified for rescue aid. It ruled that the Commission had correctly assessed the measure’s compatibility with the internal market, as well as its appropriateness and proportionality. The Court also determined that the Commission’s review was thorough and found no violations of legal principles such as non-discrimination or freedom to provide services. The General Court also dismissed Ryanair’s claims that the Commission’s assessment was inadequate and incomplete, as well as allegations that the decision lacked sufficient reasoning. As a result, Ryanair’s claims were dismissed entirely.
For more information, see the GC’s judgment.