714 COMPETITION LAW IN TOURISM days earlier. The aid measure, in the form of a loan guarantee scheme for certain airlines, was deemed compatible with the internal market under article 107(3)(b) TFEU, which provides for a serious disturbance in the economy of a Member State. The measure aimed at providing airlines with sufficient liquidity to maintain their economic activities during and after the pandemic. This support would take the form of a public guarantee specifically granted to important airlines for Sweden’s connectivity and to which the Swedish authorities have issued an operating licence. More specifically, it was a revolving credit line of up to 1.5 billion Swedish kronor in favour of SAS, justified by the difficulties in obtaining loans from credit institutions under the Swedish aid scheme. The aim was to partially compensate SAS for the damage resulting from the cancellation or rescheduling of its flights due to the travel restrictions imposed by the pandemic. On 24 April 2020, the Commission issued the final decision on the Swedish State aid measure concerning the compensation for the damage caused to SAS by COVID-19, finding it to be State aid within the meaning of article 107(1) TFEU and compatible with the internal market under article 107(2)(b) TFEU, in other words, that the pandemic constituted an exceptional occurrence. The five pleas raised by Ryanair in its challenge are identical to those in the previous case (Danish aid to SAS), and the European Court of Justice gave an identical response, rejecting all of them. 4.4. Finnish State aid to Finnair The State aid measure in question – a State guarantee covering 90% of the loan for a maximum period limited to three years, to which the Commission did not raise objections – consists in helping Finnair to obtain a loan of 600 million euros from a pension fund to cover its working capital needs. The basis for State aid rested on article 107(3)(b) TFEU2, as interpreted by points 2 and 3.2 of the Commission Communication of 19 March 2020 entitled “Temporary Framework 2 According to article 107(3)(b) TFEU, the following may be considered compatible with the internal market any “aid to promote the execution of an important project of common European interest or to remedy a serious disturbance in the economy of a Member State”. In this context, the EU Courts have established that the disturbance in question must affect all or a substantial part of the economy of the Member State concerned, and not merely that of one of its regions or parts of its territory. This solution is consistent with the need to interpret strictly any exceptional provision such as Article 107(3)(b) TFEU. Considering that the outbreak of COVID-19 affects all Member States and that the containment measures taken by Member States have an impact on business, the Commission considers that State aid is justified and can be declared compatible with the internal market under this article for a limited period of time to address liquidity shortages faced by companies and to ensure that the disruption caused by the pandemic does not jeopardise the viability of companies, in particular SMEs.
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