EU court overturns approval of corona aid for Condor

Because Ryanair saw the free movement of services violated by the state Corona aid for the German Condor, the low-cost airline sued against the release – with success. What exactly follows from this is still unclear.

Condor also received state aid during the crisis.

Ryanair has achieved a success against state corona aid for the German Condor before the EU court. The judges overturned the EU Commission’s decision to approve the aid on Wednesday. The decision of the Brussels authority was not sufficiently justified, said the court in Luxembourg.

In practice, however, this initially has no consequences: the effect of the declaration of invalidity was suspended until the EU Commission has passed a new decision. (Case T 665/20)

Germany had registered the aid in favor of Condor in Brussels in April 2020. This involved two government-secured loans with reduced interest rates in the amount of 550 million euros. The background was damage caused by the cancellation or postponement of flights due to travel restrictions in the corona pandemic. The low-cost airline Ryanair sued against the release by the Commission. Among other things, the company complains about violations of the freedom to provide services.

The Condor case is one of many in which Ryanair is taking action against state corona aid for competitors. So far, the plaintiff has succeeded in some cases but not in others.