This document is an excerpt from the EUR-Lex website
Document 62020TJ0737
Judgment of the General Court (Tenth Chamber) of 18 October 2023.
Ryanair DAC v European Commission.
State aid – Latvian air transport market – Aid granted by Latvia to airBaltic in the context of the COVID-19 pandemic – Recapitalisation – Decision not to raise any objections – Action for annulment – Locus standi – Admissibility – Temporary Framework for State aid measures – Measure intended to remedy a serious disturbance in the economy of a Member State – Failure to weigh the beneficial effects of the aid against its adverse effects on trading conditions and the maintenance of undistorted competition – Identification of the relevant market – Significant market power – Equal treatment – Freedom of establishment – Freedom to provide services – Obligation to state reasons.
Case T-737/20.
Judgment of the General Court (Tenth Chamber) of 18 October 2023.
Ryanair DAC v European Commission.
State aid – Latvian air transport market – Aid granted by Latvia to airBaltic in the context of the COVID-19 pandemic – Recapitalisation – Decision not to raise any objections – Action for annulment – Locus standi – Admissibility – Temporary Framework for State aid measures – Measure intended to remedy a serious disturbance in the economy of a Member State – Failure to weigh the beneficial effects of the aid against its adverse effects on trading conditions and the maintenance of undistorted competition – Identification of the relevant market – Significant market power – Equal treatment – Freedom of establishment – Freedom to provide services – Obligation to state reasons.
Case T-737/20.
ECLI identifier: ECLI:EU:T:2023:641
Judgment of the General Court (Tenth Chamber) of 18 October 2023 –
Ryanair v Commission (airBaltic; COVID-19)
(Case T‑737/20) ( 1 )
(State aid – Latvian air transport market – Aid granted by Latvia to airBaltic in the context of the COVID-19 pandemic – Recapitalisation – Decision not to raise any objections – Action for annulment – Locus standi – Admissibility – Temporary Framework for State aid measures – Measure intended to remedy a serious disturbance in the economy of a Member State – Failure to weigh the beneficial effects of the aid against its adverse effects on trading conditions and the maintenance of undistorted competition – Identification of the relevant market – Significant market power – Equal treatment – Freedom of establishment – Freedom to provide services – Obligation to state reasons)
1. |
Action for annulment – Natural or legal persons – Measures of direct and individual concern to them – Commission decision finding State aid compatible with the internal market without opening the formal investigation procedure – Action by parties concerned within the meaning of Article 108(2) TFEU – Action designed to safeguard the procedural rights of the parties concerned – Admissibility (Arts 108(2) and 263, fourth para., TFEU; Council Regulation No 2015/1589, Art. 1(h)) (see paragraph 15) |
2. |
Action for annulment – Natural or legal persons – Measures of direct and individual concern to them – Individual concern – Criteria – Commission decision finding aid compatible with the internal market – Action of a competing undertaking claiming that its market position is significantly affected – Admissibility – Obligation for the competing undertaking to provide a precise definition of the market at issue and to compare the situation of all the competitors present on that market in order to differentiate itself in relation to them – None – Proof that the competing undertaking’s position on the market in question is significantly affected (Arts 108(2) and (3) and 263, fourth para., TFEU) (see paragraphs 16-37) |
3. |
Action for annulment – Natural or legal persons – Measures of direct and individual concern to them – Direct concern – Criteria – Commission decision finding aid compatible with the internal market – Action brought by an undertaking which is a competitor of the undertaking in receipt of aid – Competing undertaking proving direct concern (Art. 263, fourth para., TFEU) (see paragraph 38) |
4. |
Aid granted by a Member State – Prohibition – Derogations – Aid capable of being regarded as compatible with the internal market – Aid intended to remedy a serious disturbance in the economy of a Member State – Assessment – Aid measure in favour of an airline important for the national economy in the context of the COVID-19 pandemic – Assessment in the light of the Commission Communication on the Temporary Framework for State aid measures to support the economy in the current COVID-19 outbreak – Aid measure consisting in a recapitalisation of the airline – Measure necessary to remedy a serious disturbance in the national economy (Art. 107(3)(b) TFEU) (see paragraphs 49-53, 56-58) |
5. |
Aid granted by a Member State – Prohibition – Derogations – Aid capable of being regarded as compatible with the internal market – Assessment in the light of Article 107(3)(b) TFEU – Taking into account previous practice – Precluded (Art. 107(3)(b) TFEU) (see paragraphs 54, 55) |
6. |
Aid granted by a Member State – Prohibition – Derogations – Aid capable of being regarded as compatible with the internal market – Aid intended to remedy a serious disturbance in the economy of a Member State – Assessment – Aid measure in favour of an airline important for the national economy in the context of the COVID-19 pandemic – Assessment in the light of the Commission Communication on the Temporary Framework for State aid measures to support the economy in the current COVID-19 outbreak – Aid measure consisting in a recapitalisation of the airline – Risk of insolvency of the airline without the recapitalisation measure – No error of assessment (Art. 107(3)(b) TFEU; Commission Communication 2020/C 91/01 I/01, point (49)(a)) (see paragraphs 71-73) |
7. |
Aid granted by a Member State – Prohibition – Derogations – Aid capable of being regarded as compatible with the internal market – Aid intended to remedy a serious disturbance in the economy of a Member State – Assessment – Aid measure in favour of an airline important for the national economy in the context of the COVID-19 pandemic – Assessment in the light of the Commission Communication on the Temporary Framework for State aid measures to support the economy in the current COVID-19 outbreak – Aid measure consisting in a recapitalisation of the airline – Systemic importance of the recipient company for the economy of the country concerned – No error of assessment (Art. 107(3)(b) TFEU; Commission Communication 2020/C 91 I/01, point (49)) (see paragraphs 74-92) |
8. |
Aid granted by a Member State – Prohibition – Derogations – Aid capable of being regarded as compatible with the internal market – Aid intended to remedy a serious disturbance in the economy of a Member State – Assessment – Aid measure in favour of an airline important for the national economy in the context of the COVID-19 pandemic – Assessment in the light of the Commission Communication on the Temporary Framework for State aid measures to support the economy in the current COVID-19 outbreak – Aid measure consisting in a recapitalisation of the airline – Inability of the airline to obtain financing on the market for all of its needs on affordable terms – No error of assessment (Art. 107(3)(b) TFEU; Commission Communication 2020/C 91 I/01, point (49)(c)) (see paragraphs 93-111) |
9. |
Aid granted by a Member State – Prohibition – Derogations – Aid capable of being regarded as compatible with the internal market – Aid intended to remedy a serious disturbance in the economy of a Member State – Assessment – Aid measure in favour of an airline important for the national economy in the context of the COVID-19 pandemic – Assessment in the light of the Commission Communication on the Temporary Framework for State aid measures to support the economy in the current COVID-19 outbreak – Aid measure consisting in a recapitalisation of the airline – Measure including a mechanism aimed at incentivising gradual redemption of the capital received – No error of assessment (Art. 107(3)(b) TFEU; Commission Communication 2020/C 91 I/01, points (56), (61), (79) and (80)) (see paragraphs 123-143) |
10. |
Aid granted by a Member State – Prohibition – Derogations – Aid capable of being regarded as compatible with the internal market – Aid intended to remedy a serious disturbance in the economy of a Member State – Assessment – Aid measure in favour of an airline important for the national economy in the context of the COVID-19 pandemic – Assessment in the light of the Commission Communication on the Temporary Framework for State aid measures to support the economy in the current COVID-19 outbreak – Aid measure consisting in a recapitalisation of the airline – Conditions for presenting a restructuring plan – Breach of principle of proportionality – None (Art. 107(3)(b) TFEU; Commission Communication 2020/C 91 I/01, point (85)) (see paragraphs 149-154, 156) |
11. |
Aid granted by a Member State – Prohibition – Derogations – Aid capable of being regarded as compatible with the internal market – Assessment in the light of Article 107(3)(b) TFEU – Criteria – Weighing the beneficial effects of the aid against its adverse effects on trading conditions and the maintenance of undistorted competition – Not a necessary criterion (Art. 107(3) TFEU) (see paragraphs 162-167) |
12. |
Aid granted by a Member State – Prohibition – Derogations – Aid capable of being regarded as compatible with the internal market – Aid intended to remedy a serious disturbance in the economy of a Member State – Assessment – Aid measure in favour of an airline important for the national economy in the context of the COVID-19 pandemic – Assessment in the light of the Commission Communication on the Temporary Framework for State aid measures to support the economy in the current COVID-19 outbreak – Aid measure consisting in a recapitalisation of the airline – Assessment of whether the airline has significant market power on the market in question – Definition of those markets using the airport-by-airport approach – Whether permissible (Art. 107(3)(b) TFEU; Commission Communication 2020/C 91 I/01, point (72)) (see paragraphs 191-203) |
13. |
Aid granted by a Member State – Prohibition – Derogations – Aid capable of being regarded as compatible with the internal market – Aid intended to remedy a serious disturbance in the economy of a Member State – Assessment – Aid measure in favour of an airline important for the national economy in the context of the COVID-19 pandemic – Assessment in the light of the Commission Communication on the Temporary Framework for State aid measures to support the economy in the current COVID-19 outbreak – Aid measure consisting in a recapitalisation of the airline – Assessment of whether the airline has significant market power on the market in question – No error of assessment (Art. 107(3)(b) TFEU; Commission Communication 2020/C 91 I/01, point (72)) (see paragraphs 212-237) |
14. |
Aid granted by a Member State – Prohibition – Derogations – Aid capable of being regarded as compatible with the internal market – Aid intended to remedy a serious disturbance in the economy of a Member State – Recapitalisation of an airline in order to compensate it in the context of the COVID-19 pandemic – Aid compatible with the internal market under Article 107(3)(b) TFEU – Assessment of compatibility with the principle of non-discrimination – Criteria – Objective of the aid – Need for the aid – Proportionality of the aid (Art. 107(3)(b) TFEU) (see paragraphs 244-262) |
15. |
Aid granted by a Member State – Prohibition – Derogations – Aid capable of being regarded as compatible with the internal market – Aid intended to remedy a serious disturbance in the economy of a Member State – Assessment – Aid measure in favour of an airline important for the national economy in the context of the COVID-19 pandemic – Aid compatible with the internal market under Article 107(3)(b) TFEU – Infringement of the freedom to provide services and the freedom of establishment – None (Arts 49, 58(1), 100(2) and 107(3)(b) TFEU) (see paragraphs 267-272) |
16. |
Aid granted by a Member State – Planned aid – Examination by the Commission – Preliminary review and main review – Compatibility of aid with the internal market – Difficulties of assessment – Commission’s duty to initiate the main review procedure – Serious difficulties – Concept – Objective nature – Circumstances enabling the existence of such difficulties to be established – Judicial review – Scope (Arts 107 and 108(2) and (3) TFEU; Council Regulation No 2015/1589, Art. 4(3) and (4)) (see paragraphs 276-280) |
17. |
Aid granted by a Member State – Commission decision not to raise objections to an aid scheme – Obligation to state reasons – Scope – Account taken of the context and all the legal rules governing the matter (Arts 107(3)(b) and 296 TFEU) (see paragraphs 284-292) |
Operative part
The Court:
1. |
Dismisses the action. |
2. |
Orders Ryanair DAC to bear its own costs and to pay those incurred by the European Commission and Air Baltic Corporation AS. |
3. |
Orders the Republic of Latvia to bear its own costs. |
( 1 ) OJ C 53, 15.2.2021.