On Wednesday, Lufthansa faced a setback when the second-highest court in Europe ruled in favor of Ryanair. The court annulled a decision made by the European Union competition regulator, which had cleared Lufthansa’s state bailout.
The court identified flaws in the EU competition regulators’ approval of the German government’s 6-billion-euro rescue package, citing inadequate incentives for prompt repayment.
Lufthansa has stated that it will analyze the ruling and make a decision on further action. The airline has already fully repaid the aid, which may minimize any immediate effects of the verdict. However, it could have implications for future government bailouts.
Related: EU Court To Hear Ryanair’s Objection On Aid To Aegean Airlines
The Economy Ministry of Germany stated that they cannot determine the consequences of the ruling and will be reviewing it.
This was one of several legal cases brought by Ryanair against the aid provided to its rivals and cleared by the Commission under easier rules aimed at helping EU governments prop up companies hit by the pandemic.
