Competition Law in Tourism

State Aids to Airlines due to COVID-19 and Ryanair’s Actions before the European Court of Justice Carlos Torres1 1. Introduction; 2. The general principle that State aid is incompatible with the internal market; 3. Member States must notify the Commission before granting aid; 4. State aid to airlines related to the COVID-19 pandemic; 4.1. France: airport taxes; 4.2. Danish State aid to SAS; 4.3. Swedish State aid to SAS; 4.4. Finnish State aid to Finnair; 4.4.1. Infringement of Article 107(3)(B) TFEU; 4.4.2. Breach of the principles of non-discrimination, freedom to provide services and freedom of establishment; 4.4.3. Infringement of Article 108(2) TFEU; 4.4.4. Breach of the obligation to state reasons; 4.5. Portuguese State aid to TAP. 1. INTRODUCTION Similar to tourism in general, the air transport sector has been severely hit by the pandemic, with brutal loss of revenue, on the one hand, and the continued highfixed costs, on the other. In light of the unprecedented negative economic impact generated by COVID-19, if the Member States did not come to the aid of the sector, traditional airlines would not have survived. This financial aid is provided under European legislation, which applies in the event of natural disasters or other exceptional occurrences. However, Ryanair considers that State aid covering damage resulting from exceptional occurrences [a situation provided for in article 107(2)(b) TFEU] should be granted to all airlines. Thus, if aMember State grants aid to a traditional airline, it should also do so to the low-cost airlines with which it competes. For instance, since France and Portugal have granted State aid to Air France and 1

RkJQdWJsaXNoZXIy MTE4NzM5Nw==