BRUSSELS, April 23 (Reuters) - The European Union's top court said on Thursday that it upheld the annulment of the European Commission's approval of Germany's 6 billion euro bailout of airline
Lufthansa loses appeal in state aid dispute with Ryanair
EU Court Ruling and Implications for Lufthansa
Lufthansa's Appeal and Court Decision
BRUSSELS, April 23 (Reuters) - Germany's Lufthansa lost its appeal on Thursday against a court ruling that struck down EU approval of state aid it received during the COVID pandemic, confirming a victory for rival Ryanair.
The European Union's Court of Justice dismissed Lufthansa's appeal, upholding a General Court ruling that annulled the European Commission's decision to clear the airline's recapitalisation.
Official Statement from the Court
"By its judgment today, the Court of Justice dismisses Lufthansa's appeal and thus upholds the General Court's ruling," the court said in a statement.
Background of the Legal Challenge
The original ruling dates back to 2023 and followed a legal challenge brought by Ryanair.
Lufthansa's Response and Ongoing Developments
Lufthansa's Statement on the Ruling
“We take note of the European Court of Justice’s ruling. At the same time, we would like to point out that the European Commission’s investigation, which has been ongoing since 2024 and is intended to lead to a new decision, can now take the ECJ’s ruling into account. We will engage constructively in the ongoing process and are in close contact with all relevant institutions,” Lufthansa said.
Operational and Industrial Challenges
Pilots' Union Dispute and Strike Action
The decision comes as Lufthansa is embroiled in a dispute with its pilots' union over pensions and has been hit by strike action. The group said on Tuesday it would cut 20,000 short-haul flights from its schedule through October and earlier this month announced the permanent withdrawal of 27 CityLine aircraft, citing higher jet fuel prices and costs linked to the industrial action.
Responses from Other Parties
The European Commission and Ryanair did not immediately reply to requests for comment.
Reporting Credits
(Reporting by Inti Landauro and Yun Chee Foo in Brussels, Charlotte Van Campenhout in Amsterdam, Ilona Wissenbach in Frankfurt, Additional reporting by Miranda Murray in Berlin, Editing by Mark Potter)
