Ryanair Disapproves Multi-Billion-Dollar Support for Lufthansa

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Ryanair disapproves of billions of state aid to Lufthansa. State aid is needed to guide the German aviation giant through the crisis.

 

According to the Irish price fighter, the rescue plan will distort competition. Ryanair, therefore, challenges the decision of the European Commission to agree to the emergency package to the European Court of Justice.

“If Lufthansa needs the support to get rid of competition, then society doesn’t need it to survive,” Ryanair director of legal affairs Juliusz Komorek said in a video interview with journalists on Thursday.

“Liquidity problems are the only just reason for getting state aid in this crisis.”

Ryanair has also asked Brussels to investigate Lufthansa’s alleged price agreements with other airlines. This is how it wants to prevent a price war in Italy.

The European Commission agreed on Thursday with the billions of euros in support from the German government. Berlin wants to save Lufthansa by taking a 20 percent stake for 6 billion euros and guaranteeing a loan of 3 billion euros.

As a condition for approval of the aid from Brussels, Lufthansa must surrender part of the landing rights at the airports of Frankfurt and Munich.

European Commissioner Margrethe Vestager (competition) says emergency relief will help Lufthansa weather the crisis in the aviation sector through the virus outbreak.

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