Ryanair appeals to justice for rescue of Air Europa by Spanish government.
Ryanair announced this Friday that it has filed an appeal with the European Court of Justice (ECJ) against the authorization by the European Commission to the Spanish government to finance the rescue of Air Europa through the Fund to Support the Solvency of Strategic Companies.
See also: Spanish government approves 475 million aid package for Air Europa.
Sources from the Irish company told EFE in a statement that Ryanair will take to “the European courts all cases” in which “state aid” is granted that “contravenes Community law,” particularly those that undermine the “principles of non-discrimination and freedom to provide services.
Ryanair, Europe’s leader in the low-cost sector, recalled that Air Europa will receive 475 Million Euros from the Spanish Government from the Fund for Supporting the Solvency of Strategic Companies, which has a budget of 10,000 Million Euros and which is managed by the state-owned industrial holding company Sociedad Estatal de Participaciones Industriales (SEPI).
See also: Air Europa will double its flights to Latin America by the end of the year.
The Irish air company stated that SEPI’s “program is only available” for those airlines “which operate with a Spanish license” and it considers, therefore, that it is “discriminatory and in breach of EU legislation”.
This rescue is the first one which the Government channels through the above mentioned fund and, once it is finished, Iberia will examine the new situation of Air Europa for a possible purchase.
The former public airline, now part of the British-Spanish aviation group IAG, already declared a year ago its intention to take over Air Europa for 1,000 million euros in cash, an operation that stopped the pandemic.
In addition to the 475 Million Euros of public money, Air Europa has a loan of 140 Million Euros guaranteed by the Instituto de Crédito Oficial (ICO) and 600 Million Euros of debt, with negative operating results.
Ryanair intensified its campaign against state aid last September by taking the Community Executive to European justice to disallow the bailout of six airlines by their respective governments: SAS, Finnair, TAP, Air France, KLM, and Lufthansa.
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