62021TJ0014_INF
Judgment of the General Court (Tenth Chamber) of 18 October 2023 –Ryanair v Commission (Brussels Airlines; COVID-19)
(Case T‑14/21) (
1
)
(State aid – Belgian air transport market – Aid granted by Belgium to Brussels Airlines in the context of the COVID-19 pandemic – Recapitalisation – Loan – Decision not to raise objections – 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 – 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 2015/1589, Art. 1(h))
(see paragraphs 11-14)
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 rival undertaking claiming that its market position is significantly affected – Admissibility – Obligation for the rival 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 – Demonstration of a substantial adverse effect on the position of the competing undertaking on the market in question
(Arts 108(2) and (3) and 263, fourth para., TFEU)
(see paragraphs 15-33)
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 establishing that it is directly concerned
(Art. 263, fourth para., TFEU)
(see paragraph 34)
4.
Aid granted by a Member State – Prohibition – Derogations – 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 consisting of a subsidised interest loan and recapitalisation of an airline – Criteria for assessment
(Art. 107(3)(b) TFEU; Commission Communication 2020/C 91 I/01, points 49, 52, 53, 54, 71 and 72)
(see paragraphs 43-69, 77-85, 88-92, 95-100, 103-110, 118-123, 127, 128, 134-136, 140-142)
5.
Aid granted by a Member State – Prohibition – Derogations – 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 consisting of a subsidised interest loan and recapitalisation of an airline – Risk of insolvency of the airline in the absence of the recapitalisation measure – No error of assessment
(Art. 107(3)(b) TFEU; Commission Communication 2020/C 91 I/01, point 49(a))
(see paragraphs 77-85)
6.
Aid granted by a Member State – Prohibition – Derogations – Aid that may be considered compatible with the common 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 consisting of a subsidised interest loan and recapitalisation of an airline – Recapitalisation measure to be used to achieve a common interest – Systemic importance of the beneficiary 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(b))
(Art. 107(3)(b) TFEU)
(see paragraphs 86-100)
7.
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 93, 94, 158, 159)
8.
Aid granted by a Member State – Prohibition – Derogations – 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 consisting of a subsidised interest loan and recapitalisation of an airline – Inability of the airline to finance all its needs on the market on affordable terms – No error of assessment
(Art. 107(3)(b) TFEU; Commission Communication 2020/C 91 I/01, point 49(c))
(see paragraphs 101-111)
9.
Aid granted by a Member State – Prohibition – Derogations – 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 consisting of a subsidised interest loan and recapitalisation of an airline – Recapitalisation measure representing the most appropriate and the least distortive to competition – No error of assessment
(Art. 107(3)(b) TFEU; Commission Communication 2020/C 91 I/01, point 53)
(see paragraphs 112-123)
10.
Aid granted by a Member State – Prohibition – Derogations – 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 consisting of a subsidised interest loan and recapitalisation of an airline – Recapitalisation measure with safeguards against aggressive commercial expansion by the beneficiary – No error of assessment
(Art. 107(3)(b) TFEU; Commission Communication 2020/C 2020/C 91 I/01, point 71)
(see paragraphs 124-136)
11.
Aid granted by a Member State – Derogations – 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 consisting of a subsidised interest loan and recapitalisation of an airline – Measure necessary to remedy a serious disturbance in the national economy
(Art. 107(3)(b) TFEU)
(see paragraphs 147-159)
12.
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)(b) TFEU)
(see paragraphs 160-166)
13.
Aid granted by a Member State – Prohibition – Derogations – Aid capable of being regarded as compatible with the internal market – Aid to remedy serious disturbance in the economy of a Member State – Granting a soft loan and recapitalisation to an airline 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 168-182)
14.
Aid granted by a Member State – Prohibition – Derogations – 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 – 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 183-190)
15.
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 198-205)
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 by Brussels Airlines SA/NV;
3.
Orders the Kingdom of Belgium and the Federal Republic of Germany to bear their own costs.
(
1
)	OJ C 72, 1.3.2021.