General Court dismisses Ryanair’s appeal against TAP Air Portugal restructuring aid decision
The General Court (GC) has rendered its judgment in Ryanair v Commission (TAP ; aide à la restructuration) (T-458/22), dismissing Ryanair’s action against the Commission’s approval of EUR 2.55 billion in restructuring aid granted by Portugal to TAP Air Portugal.
In December 2021, the Commission approved Portugal’s notified support package for TAP, including a loan guarantee, recapitalisation, and conversion of a prior state loan into equity, finding that, although it constituted State aid, it complied with the EU Rescue and Restructuring Guidelines.
The GC confirmed that the Commission correctly established TAP’s eligibility for restructuring aid and that the measure pursued an objective of common interest while being necessary, appropriate and proportionate under the R&R Guidelines. The GC rejected Ryanair’s arguments that the Commission failed to show the viability of TAP’s restructuring plan, finding that the plan was realistic and coherent. It also ruled that the Commission had duly assessed the potential distortive effects of the aid and had not breached principles such as non-discrimination, freedom to provide services or freedom of establishment. Finally, the Court found that the Commission’s decision was sufficiently reasoned.
For more information, see the GC’s judgment.