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EU Court Upholds German Covid Loans to Condor, Dismisses Ryanair Challenge

The ruling confirms the legality of Germany’s €400 million support as compatible with EU state aid rules, allowing Ryanair to seek review at the European Court of Justice.

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Das Gericht der Europäischen Union hat eine Klage der Fluggesellschaft Ryanair gegen deutsche Coronahilfen für Condor abgewiesen.

Overview

  • The EU General Court in Luxembourg dismissed Ryanair’s lawsuit over KfW’s €400 million loans to Condor, ruling the measures comply with EU state aid rules.
  • The decision upholds the European Commission’s revised 2021 approvals of three German aid packages exceeding €525 million granted to Condor during pandemic travel restrictions.
  • Ryanair had argued the aid was discriminatory and partly for non-pandemic restructuring costs, but judges found no violation of competition or internal market freedoms.
  • The verdict follows multiple EU court rulings that have alternately annulled or endorsed German support, including the 2021 cancellation of a €550 million package and a May 2024 voiding of €321 million in restructuring aid.
  • Condor has appealed a separate EU court nullification of its €321 million restructuring grant to the European Court of Justice, where it remains pending.