EU court rejects Lufthansa appeal in €6 billion state aid case

The European Union Court of Justice on April 23 rejected an appeal by Lufthansa, which had challenged a ruling that found €6 billion in German state aid provided during the COVID-19 pandemic unlawful.

The ruling confirms the annulment of a 2020 European Commission decision approving Lufthansa’s recapitalisation, Caliber.Az reports, citing French media.

In 2023, the EU General Court had already overturned the Commission’s approval following legal challenges from rival airlines Ryanair and Condor, referring to breaches of fair competition rules and improper application of temporary state aid regulations during the pandemic.

Lufthansa subsequently appealed that decision.

In 2020, the European Commission approved a support package including a €300 million capital increase and €5.7 billion in bond issuance, part of which could be converted into shares.

The aid was designed to support the airline as its operations were nearly halted due to COVID-19.

Lufthansa has since repaid the subsidies, limiting the practical impact of the rulings.

The company said it takes the decision into account and noted that an ongoing European Commission investigation could lead to a further review of the case.

The Commission also said it is assessing the ruling and continuing its analysis.

By Bakhtiyar Abbasov