The Limited Times

Now you can see non-English news...

Ryanair fails with lawsuit against Condor aid

2022-05-18T16:26:54.215Z

The Irish low-cost airline has taken legal action against a German rescue loan for the holiday airline Condor. The airline now has to accept a defeat in court.



Enlarge image

Ryanair plane in Nuremberg

Photo: Daniel Karmann / dpa

The Court of Justice of the European Union (EU) has dismissed a lawsuit by the Irish airline Ryanair against a German rescue loan for the German airline Condor worth millions.

After the insolvency of the Condor parent company Thomas Cook, Germany registered a cash injection of 380 million euros in favor of Condor, which was approved by the EU Commission.

This aid was compatible with EU law, the court said on Wednesday.

Ryanair had challenged the decision of the EU Commission and, among other things, claimed that there was no formal examination procedure before approval.

The court rejected this.

In addition, Ryanair could not refute that Condor's financial difficulties were mainly due to the insolvency of the parent company Thomas Cook.

In its lawsuit, Ryanair argued that Condor's financial difficulties were caused by an arbitrary distribution of costs within the Thomas Cook group.

The judgment can still be appealed to the European Court of Justice.

Bankruptcy averted

The aid, notified in September 2019, aimed to maintain regular air traffic and limit the negative impact on Condor caused by the insolvency of its parent company.

At the time, the EU Commission also emphasized that the loan would “contribute to the proper maintenance of flight services in the interests of passengers”.

The loan was subject to strict conditions.

Condor had recently found a new investor and thus averted the impending insolvency.

The asset manager Attestor took over 51 percent of the shares in the airline.

The company recently had 4,000 employees.

800 employees had already left the company during the restructuring.

beb/dpa

Source: spiegel

All business articles on 2022-05-18

You may like

Business 2022-05-18T16:26:54.215Z
News/Politics 2022-03-27T06:23:50.858Z
News/Politics 2022-03-29T03:20:15.771Z
News/Politics 2022-03-28T03:20:57.730Z
News/Politics 2022-03-30T03:08:21.023Z

Trends 24h

Latest

© Communities 2019 - Privacy