Ryanair's Quarrel with Condor's EU Aid: Court Rejects Ryanair's Second Challenge
EU Court Rejects Ryanair's Lawsuit Challenging Financial Assistance to Condor Airline - EU Court Dismisses Ryanair's Challenge on Coronavirus Aid given to Condor Airlines
Here's the lowdown on Ryanair's ongoing spat with the European Commission over financial aid for Condor Flugdienst.
Originally, the EU Commission green-lit several aid packages for Condor, including a €380 million rescue loan and a restructuring deal involving debt write-offs and interest waivers. But Ryanair took issue with this decision and kicked off a legal battle.
In June 2021, the Court of Justice of the European Union (CJEU) overturned the initial Commission approval, prompted by Ryanair's first lawsuit. But Ryanair's victory was short-lived as the court's ruling was suspended, allowing the Commission to make a new decision.
Ryanair wasn't done yet, and they brought out the big guns, arguing that the Commission should've initiated a formal review process for the restructuring aid, which was only given preliminary approval. Regrettably for Ryanair, the court didn't agree this time around. They declared that there were no questionable doubts about the aid's compatibility with the internal market.
Ryanair couldn't prove that the aid unfairly favored Condor over other airlines or trampled on the freedom of establishment and the freedom to provide services. With no better options, Ryanair can still drag the fight to the European Court of Justice (ECJ) for a final ruling.
The tussle between Ryanair and Condor has played out twice in the Luxembourg courts, linked to the insolvency of Thomas Cook, Condor's former parent company. In May 2022, a lawsuit by Ryanair against a €380 million loan to Condor was chucked out. Most recently, in May 2024, the court invalidated the approval of a restructuring aid amounting to €321 million. Condor has lodged an appeal with the ECJ, and a decision is pending.
- Key Players: Ryanair, Condor Flugdienst, Court of Justice of the European Union, EU, EU Commission, Luxembourg
- Relevant Entities: KfW Bankengruppe
Enrichment Insights:
- Key Developments:
- Ryanair's initial challenge to the rescue loan aid has been conclusively dismissed.
- The General Court annulled the restructuring aid approval, but that annulment is currently under appeal by Condor at the Court of Justice of the European Union.
- A more recent Ryanair complaint about other aid was dismissed by the General Court in June 2025, with potential for further appeal.
- Timeline:
- June 2021: The Court of Justice of the European Union overturned the initial approval of the EU Commission regarding loans of 550 million euros, but suspended the effect of the ruling.
- May 2022: The General Court dismissed Ryanair's action against the rescue loan part.
- May 2024: The court declared the approval of a restructuring aid of 321 million euros invalid.
- June 2025: The General Court ruled that Ryanair failed to demonstrate that a deeper investigation was necessary, effectively dismissing the complaint related to other aid packages.
- The EU Commission's decision to provide financial aid to Condor Flugdienst, including a €380 million rescue loan, has been subject to challenges by Ryanair, with the Court of Justice of the European Union (CJEU) rejecting Ryanair's second lawsuit, stating that there were no questionable doubts about the aid's compatibility with the internal market.
- Despite the court's decisions, Ryanair continues to engage with the European Court of Justice (ECJ) as they seek a final ruling, disputing that the aid, under policies and politics of the EU, unfairly favored Condor over other airlines or infringed on the freedom of establishment and the freedom to provide services.
