Action brought on 23 October 2020 – Ryanair v Commission

(Case T-643/20)

Language of the case: English

Parties

Applicant: Ryanair DAC (Swords, Ireland) (represented by: F. Laprévote, V. Blanc, E. Vahida, S. Rating and I. Metaxas-Maranghidis, lawyers)

Defendant: European Commission

Form of order sought

The applicant claims that the Court should:

annul the European Commission’s decision (EU) of 13 July 2020 on State aid SA. 57116 - The Netherlands - COVID-19: State loan guarantee and State loan for KLM; and

order the European Commission to pay the costs.

The applicant has also requested that its action be determined under the expedited procedure as referred to in Article 23a of the Statute of the Court of Justice.

Pleas in law and main arguments

In support of the action, the applicant relies on five pleas in law.

First plea in law, alleging that the European Commission wrongly excluded aid to Air France from the scope of the decision.

Second plea in law, alleging that the European Commission violated specific provisions of the TFEU and the general principles of European law regarding the prohibition of discrimination, free provision of services and free establishment that have underpinned the liberalisation of air transport in the EU since the late 1980s. The liberalization of the air transport market in the EU has allowed the growth of truly pan-European low-fares airlines. The European Commission ignored the damage caused by the COVID-19 crisis to such pan-European airlines and their role in the air connectivity of the Netherlands by authorising the Netherlands to reserve aid to KLM. Article 107(3)(b) TFEU provides for an exception to the prohibition of State aid under Article 107(1) TFEU, but it does not provide for an exception to the other rules and principles of the TFEU.

Third plea in law, alleging that the European Commission misapplied Article 107(3)(b) TFEU and committed a manifest error of assessment by finding that the aid addresses a serious disturbance in the Dutch economy and by violating its obligation to weigh the beneficial effects of the aid against its adverse effects on trading conditions and the maintenance of undistorted competition (i.e., the “balancing test”) and to ensure that the aid is proportionate.

Fourth plea in law, alleging that the European Commission failed to initiate a formal investigation procedure despite serious difficulties and violated the applicant’s procedural rights.

Fifth plea in law, alleging that the decision violated the European Commission’s duty to state reasons.

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