The European Commission has not made it sufficiently clear why Germany was allowed to give state aid to the airline Condor due to the corona crisis.
The General Court of the European Union annuls the approval from Brussels, but the aid is not immediately reversed. As previously determined in KLM’s state aid case involving 3.4 billion euros, the daily EU board must take a new decision based on “sufficient motivation”, the European judge said.
It concerns the approval of two loans totalling 550 million euros, for which the German government granted a state guarantee and interest subsidy. The money was intended to compensate Condor, best known as a holiday pilot, for damages directly caused by the cancellation or rebooking of flights as a result of the implementation of corona travel restrictions.
The approval was based on the temporary suspension of European competition rules so that companies do not go under as a result of the pandemic. Irish airline Ryanair has filed these and many other lawsuits in Luxembourg because allowing Brussels government support is not fair to pan-European airlines, the budget flier believes.
The third time, the court, part of the European Court of Justice in Luxembourg, has ruled that the committee has not done its homework in approving state aid cases for airlines. This was previously the case with KLM and the Portuguese company TAP. Ryanair was confronted with state aid cases from Sweden and Denmark to SAS, from Finland to Finnair and from France to Air France.