Ryanair Holdings Plc scored the first wins in its European Union court campaign to topple Covid-19 bailouts for rival carriers after judges faulted EU regulators for failing to properly check that Portuguese and Dutch government aid to TAP SGPS SA and Air France-KLM was justified.
The EU General Court, the bloc’s second-highest tribunal, on Wednesday criticized the European Commission’s approval process, but suspended the effects of the rulings—including possible repayment of aid—until the regulator has reexamined the cases.
Ryanair on Wednesday lost a separate challenge to a 10 billion-euro Spanish fund for local carriers.
Ryanair has filed more than two dozen challenges to EU approvals for pandemic aid doled out by governments to carriers, including Deutsche Lufthansa AG and Air France-KLM. The Irish low-cost carrier, which has lost five of the challenges so far, argued that the aid for selected airlines creates an unfair advantage and will help rivals to emerge stronger, slash fares and swallow up others.
