In its legal battle against TAP Air Portugal, Ryanair initially won a minor victory in 2021 when the court ruled that the commission had failed to clarify whether TAP’s parent company, TAP SGPS, was part of a larger corporate group—a key factor in determining aid eligibility.
However, the commission corrected the issue and reapproved the aid package, leading to Ryanair’s latest challenge, which the court rejected Wednesday.
What’s Next for Ryanair?
With the General Court’s ruling, Ryanair has limited options for further appeal, aside from escalating the case to the EU’s highest court, the Court of Justice of the European Union (CJEU).
Despite repeated legal defeats, Ryanair’s CEO Michael O’Leary has vowed to continue challenging state aid measures, arguing that they distort competition and unfairly benefit legacy airlines over low-cost carriers.
The case underscores the broader tensions in the European airline industry, where governments have provided billions in pandemic-related bailouts, often benefiting national flag carriers at the expense of budget airlines.
