NewsEU court overturns Dutch state aid for KLM airline, siding with Ryanair

EU court overturns Dutch state aid for KLM airline, siding with Ryanair

In 2020, the European Commission approved Dutch public aid for KLM airline through a loan guarantee and a state loan. The total aid budget amounted to 3.4 billion euros. The objective was to ensure KLM's liquidity amidst the COVID-19 pandemic. However, this decision was contested by Ryanair, another airline company.

KLM airlines, like many other carriers in Europe, received public aid after the outbreak of the COVID-19 pandemic.
KLM airlines, like many other carriers in Europe, received public aid after the outbreak of the COVID-19 pandemic.
Images source: © Getty Images | NurPhoto

7 Feb 2024 | updated: 7 March 2024 09:04

A verdict issued on Wednesday saw the EU Court in Luxembourg siding with Ryanair. The court stated that "in a scenario where there are apprehensions about the cumulative impact of state aid within the same group on competition, the Commission should scrutinize the relationships between companies in that group with extra care."

The EU Court, established in 1989, was designed to alleviate some of the burdens of the Court of Justice of the EU.

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