The European Union’s top court has ordered a lower tribunal to reconsider its decision to annul €3.4 billion in Dutch state aid for KLM, partially overturning a ruling sought by Ryanair. The court also set aside the lower court’s separate decision canceling aid for German airline Condor.
Ryanair had challenged the European Commission’s approval of the KLM support, worth $3.82 billion, and a €321 million restructuring plan for Condor, both granted in the wake of the coronavirus pandemic. The EU General Court, the bloc’s second-highest court, had initially sided with the Irish low-cost carrier.
On Thursday, the Court of Justice of the European Union partially dismissed the annulment of KLM’s aid and sent Ryanair’s challenge back to the General Court for reassessment. It also dismissed the lower court’s earlier ruling that had canceled Condor’s aid package.
Ryanair said it took note of the decisions, adding that EU courts had found aid received by some carriers unlawful in similar cases. Condor welcomed the ruling, saying it provided clarity on the original approval. Air France-KLM also welcomed the decisions and said all pandemic support received by Air France-KLM, Air France and KLM had been repaid with interest. The European Commission said it took note of both decisions.
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