Competition Law in Tourism

STATE AIDS TO AIRLINES DUE TO COVID-19 AND RYANAIR’S ACTIONS 717 the aid, for the achievement of the objectives set out in article 107(3)(b) TFEU, against its negative effects on trading conditions and the maintenance of undistorted competition. The requirements to be observed are the following: 1) the Member State concerned must indeed be facing a serious disturbance in its economy; 2) the aid measures adopted to remedy that disturbance must be, on the one hand, necessary; 3) appropriate, on the other; and 4) finally, proportionate. It is presumed that those measures are adopted in the interest of the European Union so that this provision does not require the Commission to weigh the beneficial effects of the aid against its negative effects on trading conditions and the maintenance of undistorted competition, contrary to what is required by article 107(3)(c) TFEU. That is, only in point (c) is the requirement made. Thus, the European judges rejected the argument that a weighting in the light of the temporary framework was mandatory on the grounds that there was no legal basis for it. Although the measure undoubtedly conferred an advantage on Finnair in that it relieved it of costs, which it would have had to bear under normal market conditions, the Commission rightly considered, according to the EuropeanCourt, that that measure was necessary, appropriate and proportionate to remedy a serious disturbance in the Finish economy. 4.4.2. Breach of the principles of non-discrimination, freedom to provide services and freedom of establishment Concerning the principle of equal treatment, as mentioned, individual aid, by definition, benefits only one company, including those in the same position; thus, discrimination is inextricably linked to individual aid. In Ryanair’s view, if aid were granted to all airlines operating in Finland in proportion to their market share, the measure’s objective would be achieved in a non-discriminatory manner. Conversely, the General Court considered that if all airlines operating in Finland were to receive support according to their market share, the amount of aid granted to Finnair would be reduced, so that its liquidity needs would not be covered, which could, therefore, have severe repercussions on Finland’s economy.

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