European justice cancels authorization of Air France-KLM rescue plan

The airline says it is considering an appeal to the Court of Justice of the European Union.

A twist of theater, with still uncertain consequences. European justice announced, Wednesday, December 20, that it had annulled the decisions approving massive aid from France to Air France and its parent company, Air France-KLM, to compensate for losses linked to the health crisis. The Court of First Instance of the European Union, a component of the Court of Justice of the EU, considers that the European Commission committed a “error” by giving the green light to this aid.

Seizure by two competing airlines, Ryanair and Malta Air, which were considering aid measures “contrary to Union law”European justice “grants these appeals”, she announced in a press release. The concrete consequences of these judgments are uncertain. French state aid, which represents billions of euros, has enabled Air France-KLM to overcome the health crisis.

“Air France-KLM and Air France take note of the two judgments”indicated the airline group in a reaction sent to AFP, specifying that the two companies “will carefully examine (…) to assess the implications”. The two companies specify that they “will study the advisability of filing an appeal for annulment before the Court of Justice of the European Union”according to the same source.

Wednesday’s decision echoes that of May 10, when the same court canceled two vast recapitalization plans of other airlines: that of Lufthansa by Germany and SAS by Denmark and Sweden. The courts had already been taken to court, notably by Ryanair, a major critic of state aid. The company “welcomed” Wednesday of the decision: “Ryanair is now calling on the European Commission to order France to immediately recover this illegal state aid.”