Low-cost airline Ryanair has suffered another legal defeat in its ongoing battle against state aid for rival carriers, as the European Union’s General Court on Wednesday dismissed its challenge to a €1.2 billion ($1.249 billion) aid package granted to TAP Air Portugal’s parent company.
The ruling marks the latest setback in Ryanair’s years-long effort to prevent European governments from financially supporting competing airlines.
Court Upholds Legality of TAP Bailout
The case stems from a 2020 European Commission decision approving Portugal’s state aid package to help TAP survive the early days of the COVID-19 pandemic. Ryanair challenged the aid, arguing that the commission failed to properly assess its legality and the competitive impact on the aviation market.
However, the EU General Court rejected those claims, stating that the commission followed proper procedures and acted within the law.
The court further ruled that the aid package did not violate EU principles related to nondiscrimination, freedom to provide services, or freedom of establishment.
Ryanair’s Long History of State Aid Challenges
Ryanair has become one of the most aggressive challengers of state-funded airline bailouts. In 2022, the airline lost a similar case involving Finland’s national carrier, where the EU court upheld government funding during the pandemic.
