20th Dec 2023 11:13
(Alliance News) - A top EU court annulled on Wednesday a pandemic state aid programme for Air France KLM SA that had been challenged by Irish rival Ryanair Holdings PLC and Malta Air.
The General Court ruled that the European Commission "erred" in approving the French government's financial aid for Air France-KLM.
The group received billions of euros from the state after the pandemic grounded the aviation sector in 2020 – money that has since been reimbursed, with interest.
The court noted that Ryanair and Malta Air had argued that the measures were "contrary to EU law".
The two airlines said the commission had "incorrectly defined the beneficiaries" by deciding that neither the group's holding company nor Dutch airline KLM were recipients of that aid.
Air France-KLM said it took note of the ruling.
"Air France-KLM and Air France will carefully study these judgments and assess their implications," the group said in a statement.
"They will consider whether to lodge an appeal on points of law before the Court of Justice of the EU," the statement said.
The General Court previously sided with Ryanair in May in a case against massive government bailouts for Cologne-based airline Deutsche Lufthansa AG and Scandinavia's SAS during the pandemic.
Air France shares fell 0.5% to EUR13.75 each on Wednesday afternoon in Paris, while Ryanair shares were 0.3% lower at EUR18.95 each on Wednesday morning Dublin.
source: AFP
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