Austrian Airlines with E+H also successful before the Court of Justice of the European Union: State aid of EUR 150 million granted by the Republic of Austria in summer 2020 complies with EU law

In today’s judgment, the Court of Justice of the European Union (CJEU) finally dismissed the actions brought by Ryanair and Laudamotion against the approval of state aid for Austrian Airlines, Austria’s leading airline, as unfounded (C-591/21 P). Ryanair and Laudamotion brought an action against the state aid of 150 million euros that was granted by the Republic of Austria to Austrian Airlines and approved by the European Commission in July 2020. This state aid compensated Austrian Airlines for losses due to worldwide travel restrictions during the coronavirus pandemic from the beginning of March to mid-June 2020. It was part of a financing package totaling 600 million euros. This also included an equity contribution of 150 million euros from its parent company Lufthansa and a state-guaranteed bank loan of 300 million euros.

The CJEU has now confirmed the judgment of the European General Court of 14 July 2021 and held that the state aid granted to Austrian Airlines by the Republic of Austria is fully compatible with EU law. In particular, the CJEU denied the alleged discrimination against Ryanair and Laudamotion as well as the alleged overcompensation of Austrian Airlines. The CJEU thus followed the arguments of the European Commission, which was supported in the proceedings by the Republic of Austria, the Federal Republic of Germany and Austrian Airlines as interveners.

Austrian Airlines relied on an E+H team led by partner Andreas Zellhofer in the proceedings before the CJEU as well as in the proceedings before the European General Court and in the approval proceedings before the European Commission.

Advisor to Austrian Airlines AG:

Andreas Zellhofer (Partner, competition and antitrust law)
Florian Sagmeister (Partner, competition and antitrust law)