On Wednesday, November 6, budget airline Wizz Air lost its legal challenge against a capital increase for its Romanian rival TAROM, funded by the Romanian government and approved by EU competition regulators. The General Court of the European Union, Europe’s second-highest court, dismissed Wizz Air’s objections to the support package.
According to REUTERS news agency, Wizz Air brought the case to the Luxembourg-based General Court after the European Commission approved €2 million in aid to TAROM to offset the financial impact of COVID-19 travel restrictions, ruling it consistent with EU state aid regulations. The Commission had declined to initiate a formal investigation into the matter.
“That aid, amounting to almost €2 million, is compatible with the internal market,” said the Luxembourg-based General Court.
The judges confirmed that the Commission had appropriately assessed the proportionality of the aid awarded to TAROM.
Wizz Air retains the option to appeal to the Court of Justice of the European Union, the EU’s highest court, on points of law.
During the pandemic, airlines across Europe received billions of euros in state aid, which led to legal challenges from competitors, including Wizz Air and Ryanair. (€1.00 = US$1.08 at time of publication).
