EU court annuls approval of KLM, TAP aid, wants more info

A top European Union court has annulled the EU’s approval of 3.4 billion euros ($4.1 billion) in state aid for the Dutch carrier KLM

BRUSSELS -- A top European Union court on Wednesday annulled the EU's approval of 3.4 billion euros ($4.1 billion) in state aid for the Dutch carrier KLM but suspended its immediate application because of the impact of the COVID-19 pandemic on the industry. In a similar ruling backing a challenge from Irish air carrier Ryanair, the court also overturned the EU's decision to back state aid to the TAP Portuguese carrier for a potential total of 1.2 billion euros, but also suspended its application pending a new EU decision. In both cases, the Luxembourg-based General Court said that the European Commission had to come up with more complete reasoning why such aid could be granted. The two rulings were a success for Ryanair which had been stymied in its attempts to challenge before the court such state aid to other EU airlines.