Information;Judgment — ECLI:EU:T:2023:642
Date: 2023-10-18
Language of the case: English
Subject matter: State aids;Competition
Procedure: Action for annulment - unfounded
Origin: Ireland

Judgment of the General Court (Tenth Chamber) of 18 October 2023 – Ryanair v Commission (Nordica; COVID-19) (Case T‑769/20) (1) (State aid – Estonian air transport market – Aid granted by Estonia to an airline in the context of the COVID-19 pandemic – Recapitalisation and grant of a subsidised loan to Nordica – Decision not to raise any objections – Temporary Framework for State Aid – Measure intended to remedy a serious disturbance in the economy of a Member State – Equal treatment – Freedom of establishment – Freedom to provide services – Obligation to state reasons) 1. Aid granted by a Member State – Prohibition – Exceptions – Aid capable of being regarded as compatible with the internal market – Aid to remedy serious disturbance in the economy of a Member State – Assessment – Aid measure for an airline that is of importance 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 COVID-19 pandemic – Aid measure in the form of the grant of a loan at a subsidised rate and recapitalisation of an airline – Measure necessary to remedy a serious disturbance in the national economy (Art. 107(3)(b) TFEU) (see paragraphs 15-21, 23-25) 2. Aid granted by a Member State – Prohibition – Exceptions – Aid capable of being regarded as compatible with the internal market – Aid to remedy serious disturbance in the economy of a Member State – Assessment – Aid measure for an airline that is of importance 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 COVID-19 pandemic – Aid measure in the form of the grant of a loan at a subsidised rate and recapitalisation of an airline – Risk of the airline’s insolvency in the absence of the recapitalisation measure – No error of assessment (Art. 107(3)(b) TFEU; Commission Notice 2020/C 91 I/01, point 49(a)) (see paragraphs 31-33) 3. Aid granted by a Member State – Prohibition – Exceptions – Aid capable of being regarded as compatible with the internal market – Aid to remedy serious disturbance in the economy of a Member State – Assessment – Aid measure for an airline that is of importance 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 COVID-19 pandemic – Aid measure in the form of the grant of a loan at a subsidised rate and recapitalisation of an airline – Airline unable to obtain financing on the markets for the totality of its needs on affordable terms – No error of assessment (Art. 107(3)(b) TFEU; Commission Notice 2020/C 91 I/01, point 49(c)) (see paragraphs 37-44) 4. Aid granted by a Member State – Prohibition – Exceptions – Aid capable of being regarded as compatible with the internal market – Aid to remedy serious disturbance in the economy of a Member State – Assessment – Aid measure for an airline that is of importance 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 COVID-19 pandemic – Aid measure in the form of a loan at a subsidised rate and recapitalisation of an airline –Recapitalisation measure must serve to achieve a common interest –Systemic importance of the recipient company for the economy of the country concerned – No error of assessment (Art. 107(3)(b) TFEU; Commission Notice 2020/C 91 I/01, point 49(b)) (see paragraphs 50-55) 5. Aid granted by a Member State – Prohibition – Exceptions – Aid capable of being regarded as compatible with the internal market – Aid to remedy serious disturbance in the economy of a Member State – Assessment – Aid measure for an airline that is of importance 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 COVID-19 pandemic – Aid measure in the form of the grant of a loan at a subsidised rate and recapitalisation of an airline – Recapitalisation measure representing the measure that is most appropriate and least likely to distort competition – No error of assessment (Art. 107(3)(b) TFEU; Commission Notice 2020/C 91 I/01, point 53) (see paragraphs 60-66) 6. Aid granted by a Member State – Prohibition – Exceptions – Aid capable of being regarded as compatible with the internal market – Aid to remedy serious disturbance in the economy of a Member State – Assessment – Aid measure for an airline that is of importance 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 COVID-19 pandemic – Aid measure in the form of the grant of a loan at a subsidised rate and recapitalisation of an airline – Measure required to include a step-up mechanism to increase the remuneration of the State – Commission concluding there is no need to impose such a mechanism – No error of assessment (Art. 107(3)(b) TFEU; Commission Notice 2020/C 91 I/01, points 61 and 62) (see paragraphs 72-88) 7. Aid granted by a Member State – Prohibition – Exceptions – Aid capable of being regarded as compatible with the internal market – Aid to remedy a serious disturbance in the economy of a Member State – Assessment – Aid measure for an airline that is of importance 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 COVID-19 pandemic – Aid measure consisting of a recapitalisation of the airline – Conditions for the submission of a restructuring plan – Breach of principle of proportionality – None (Art. 107(3)(b) TFEU; Commission Notice 2020/C 91 I/01, point 85) (see paragraphs 93-101) 8. Aid granted by a Member State – Prohibition – Exceptions – 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)(b) TFEU) (see paragraphs 105-109) 9. Aid granted by a Member State – Prohibition – Exceptions – Aid capable of being regarded as compatible with the internal market – Aid to remedy a serious disturbance in the economy of a Member State – Assessment – Aid measure for an airline that is of importance 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 principle of non-discrimination – None (Art. 107(3)(b) TFEU) (see paragraphs 117-134) 10. Freedom to provide services – Provisions of the Treaty – Scope – Services in the transport sector within the meaning of Article 58(1) – Air transport services – Specific legal regime (Arts 56, 58(1) and 100(2) TFEU) (see paragraphs 137-139) 11. Aid granted by a Member State – Prohibition – Exceptions – Aid capable of being regarded as compatible with the internal market – Aid to remedy a serious disturbance in the economy of a Member State – Assessment – Aid measure for an airline that is of importance 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 141, 142) 12. 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 146-148) 13. 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 155-163) 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; 3. Orders the Republic of Estonia to bear its own costs. 1 OJ C 62, 22.2.2021.