These appealable rulings follow legal action, notably by low-cost airline Ryanair, which considers itself a victim of competition. But its impact remains uncertain.
The European Union Court of First Instance on Wednesday canceled two plans to recapitalize two airlines, a German plan for Lufthansa and a Danish and Swedish plan for “SAS” to save them during the Covid pandemic.
The court said in a statement that the European Commission, which approved Lufthansa’s €6 billion plan in 2020, “made several mistakes” as the German company “was not able to finance itself in the markets” to meet its needs.
As for the Scandinavian company’s plan, which was also approved by Brussels in 2020, it is worth just over one billion euros.
These appealable rulings follow legal action, notably by low-cost airline Ryanair, which considers itself a victim of competition. But its impact remains uncertain.
The aid mechanism for the German airline, which saw the German state enter its capital in exchange for fresh money, was already implemented.
In September, the German state sold the last shares it still held in Lufthansa’s capital, after entering 20 percent in 2020. Thus, the company became entirely owned by private shareholders.
