EU Court Annuls Approval of State Aid for Lufthansa
A European Union court has annulled the approval for German state aid granted to Lufthansa worth €6 billion during the COVID-19 pandemic.
A European Union court has annulled the approval for German state aid granted to Lufthansa worth €6 billion during the COVID-19 pandemic.The European Commission should not approve the German government's decision to provide Lufthansa with billions in state aid during the coronavirus pandemic, the EU General Court ruled on Wednesday.
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Strict EU guidelines against government bailouts of companies were loosened during the pandemic and the Commission had approved the aid in June 2020.
The case against the aid was brought by Ryanair and Condor, which called the state support unfair.
In its ruling, the court said, "The Commission committed several errors, in particular, by considering that Lufthansa was unable to obtain financing on the markets for the entirety of its needs."
The Commission also misjudged the German airline's market power at certain airports and agreed to conditions that did not ensure effective competition between airlines, the EU court found.
Lufthansa can appeal the ruling to the European Court of Justice.
More to come on this developing story
(AFP, DPA)
(The above story first appeared on LatestLY on May 10, 2023 02:30 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).