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Lufthansa loses its appeal in the state aid dispute with Ryanair

The German airline 'Lufthansa' lost its appeal against a court ruling on Thursday that invalidated EU approval for state aid it received during the COVID epidemic. This confirmed a victory for Ryanair, the rival.

The European Union Court of Justice rejected Lufthansa’s appeal. It upheld a General Court decision that invalidated the European Commission’s decision to clear recapitalisation of the airline.

In a?statement, the court said that the Court of Justice dismissed Lufthansa’s appeal today and upheld the General Court’s ruling. The original ruling was made in 2023, following a legal challenge by Ryanair.

"We note the European Court of Justice ruling. ?At a similar time, we'd like to highlight?that ECJ ruling can be taken into consideration by the European Commission investigation that has been going on since 2024. Lufthansa stated that it would engage in a constructive process, and was in constant contact with the?relevant institutions. Lufthansa has also been affected by strike action and is currently embroiled in an ongoing dispute with its pilots union regarding pensions. The group announced on Tuesday that it would be cutting 20,000 short-haul flight from its schedule until October. Earlier this month, the group announced the permanent removal of 27 CityLine aircraft citing higher jet fuel prices and industrial action costs. The European Commission or?Ryanair didn't immediately respond to our requests for comment. Reporting by 'Inti Landauro, Yun Chee Foo, Charlotte Van Campenhout, Ilona Wissenbach, and Mark Potter in Frankfurt. Additional reporting by Miranda Murray, in Berlin.

(source: Reuters)