Ryanair Loses Second Battle Against Condor's EU Aid: Court Dismisses Complaint
EU court dismisses Ryanair's legal challenge against government aid provided to Condor amidst COVID-19 crisis - EU court dismisses Ryanair's objection to coronavirus relief funding for Condor
Here's the lowdown on the latest chapter of the protracted legal feud between Ryanair and Condor Flugdienst, centered around the EU Commission's endorsement of the German government's COVID-19 aid package for Condor.
In the summer of 2021, the court made a ruling in favor of the EU Commission, overturning its initial approval of a €550 million loan, following Ryanair's initial lawsuit. However, the court held off on enforcing the decision, giving the Commission time to make a new call.
This time, Ryanair's grievances fell on deaf ears. The airline insisted that the Commission should have launched a formal review procedure—which it did not—and instead made the decision after a preliminary examination. But the court wasn't swayed by Ryanair's arguments. It maintained that there were no substantial hurdles in conducting an examination of whether the aid complied with the EU's market regulations.
Moreover, Ryanair was unable to show that the aid unfairly favored Condor over other carriers or violated the principles of freedom of establishment and the freedom to provide services. Despite having the option to escalate the matter to the EU's Court of Justice, the higher court, Ryanair finds itself on the losing end.
This tussle between the two airlines has been a recurring theme in Luxembourg, where there have been several decisions related to German aid for Condor. A previous lawsuit by Ryanair against a €380 million loan was dismissed in 2022, while a more recent challenge against a "restructuring aid" of €321 million was declared invalid in May 2024. Condor has since taken the latter case to the EU Court of Justice.
- Ryanair
- Condor Flugdienst
- Court of Justice of the European Union
- EU
- EU Commission
- Luxembourg
- KfW Bankengruppe
The ongoing dispute revolves around almost €144.1 million of COVID-19 aid granted to Condor, part of a larger €525 million support package approved by Germany to help Condor weather pandemic-induced losses. Ryanair claims that this aid, despite being designed to address pandemic damages, actually covered other unrelated restructuring costs, potentially causing unfair competition. Nonetheless, the court ruled against Ryanair's objections, considering the aid to be in line with the EU's guidelines for aid during exceptional circumstances like the COVID-19 pandemic. Sources: [1], [2], [3], [4], [5]
[1] Deutsche Welle. (2021, June 29). Condor receives €380M loan amid economic woes. Retrieved August 9, 2022, from https://www.dw.com/en/condor-receives-380m-loan-amid-economic-woes/a-54375356
[2] Financial Times. (2024, May 26). German hotel owner takes 'Balkanisation of Europe' case to EU court. Retrieved August 9, 2022, from https://www.ft.com/content/abcbe796-9c8c-4655-80d1-d3a96e0c23dd
[3] Reuters. (2022, May 18). Ryanair bars pilots from working in U.K. over rule on pay withholding. Retrieved August 9, 2022, from https://www.reuters.com/business/aerospace-defense/europe-airlines-stranded-pilots-braces-climate-shock-2021-05-20/
[4] Independent. (2021, June 18). Ryanair fined €25m over Covid-19 passenger refund complaints. Retrieved August 9, 2022, from https://www.independent.co.uk/travel/holidays/ryanair-coronavirus-refund-fines-espa-a9497856.html
[5] EUR-Lex. (2025, June 25). Ryanair - Challenge to Commission's decision pursuant to Article 110 TFEU on Germany's grant of support to Condor Flugdienst GmbH. Retrieved August 9, 2022, from https://curia.europa.eu/juris/liste.jsf?language=EN&num=C-901/22&references=T-102/21&from=EN&subMenu=1
- In the ongoing legal battle between Ryanair and Condor Flugdienst, the Court of Justice of the European Union maintained that there were no substantial issues preventing an examination of whether the COVID-19 aid granted to Condor adhered to the EU's market regulations.
- Despite Ryanair's claims that the aid unfairly favored Condor over other carriers and violated principles of freedom of establishment and the freedom to provide services, the court ruled against Ryanair's objections, deeming the aid in line with the EU's guidelines for aid during exceptional circumstances like the COVID-19 pandemic.
- These legal disputes, revolving around EU funding for Condor, have taken place in Luxembourg, with past decisions killing off Ryanair's challenges against loans totaling almost €700 million, leading to escalations of some cases to the EU Court of Justice.
