Court of Justice confirms approval of Finnair’s recapitalisation
Today (7 November), the Court of Justice (ECJ) rendered its judgment in Case C-588/22 P, Ryanair v Commission e.a.. It confirmed the GC’s judgment in Case T-657/20 which rejected Ryanair’s action for annulment of the Decision adopted by the Commission approving COVID-19 state aid for the recapitalisation of Finnair (SA.57410).
The ECJ has upheld the Commission’s finding that the aid was proportionate and necessary to contribute to remedying a serious disturbance to the Finnish economy, notably in view of Finnair’s significant contribution to the economy and connectivity of Finland.
The ECJ has further endorsed the Commission’s approach according to which it was necessary to adapt certain features of the COVID Temporary Framework in force at the time of adoption of the decision to account for (i) the significant participation of private investors in the recapitalisation, and (ii) the situation of the Finnish State as an existing shareholder of Finnair, which did not increase the proportion of its shareholding in Finnair as a result of the recapitalisation. The Court of Justice also found that the Commission correctly assessed that Finnair did not hold significant market power in the relevant markets in which it operated.
For further information, see the Court of Justice’s judgment.