Ryanair loses appeals against Italy's COVID aid to airlines in EU Court

BRUSSELS, July 8 (Reuters) - The European Union's General Court on Wednesday dismissed appeals lodged by Irish low-cost airline Ryanair against an Italian state aid scheme approved to support airlines during the COVID pandemic.

The court ruled that the aid scheme consisting of subsidies paid by Italy to airlines affected by the COVID-19 crisis "was compliant with EU law", insofar as it did not breach the principle of non-discrimination, nor the principles of freedom to provide services and the freedom of establishment.

The budget airline had brought the case as it sought to annul a 2020 aid scheme set up by Italy to support airlines licensed in the country with a €130 million ($148.54 million) fund, which was later increased by €100 million.

The scheme was approved by the European Commission, the European authority vetting member states' aid programs.

Ryanair alleged the aid was discriminatory and that the approval by the European Commission breached procedural rules.

The General Court initially struck down the Commission decision in 2023, although the top European tribunal, the Court of Justice, referred the case back to the General Court in 2025.

Back in April of this year, Ryanair won in another similar case in the EU's Court of Justice against German state aid to its main airline Lufthansa during COVID.

($1 = 0.8752 euros)

(Reporting by Inti LandauroEditing by Tomasz Janowski and Louise Heavens)