Ryanair loses appeal as EU Court upholds TAP bailout plan
The General Court of the European Union has dismissed Ryanair’s challenge, confirming that TAP's restructuring package, including the €2.55 billion state aid, was legitimately eligible. The court stated that TAP’s rescue aid met the objectives of the common good and was necessary, appropriate, and proportionate for restoring the airline’s viability.
In its ruling, the General Court also rejected Ryanair’s argument that the Commission failed to prove the restructuring plan was realistic, coherent, and sufficiently broad to ensure TAP’s long-term sustainability, and thus that there was any breach of guidelines. The court further noted that the Commission’s analysis did not ignore potential negative effects of the aid and that fundamental principles—such as non-discrimination and the freedom to provide services and establish, travel, and operate—were not violated.
Brussels approved TAP’s restructuring on December 21, 2021, including the €2.55 billion state aid package designed to restore the airline’s viability, with conditions intended to protect European competition.
As part of these remedies, the Brussels decision required TAP to commit to certain measures: the availability of up to 18 daily slots at Lisbon Airport, the separation of activities between TAP Air Portugal and Portugália, and the sale of non-core assets such as certain maintenance, catering, and ground-handling subsidiaries.
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Would you view these remedies as sufficient to prevent market distortions, or do you think more stringent measures should have been imposed to safeguard competition across the EU aviation sector?
