Court Validates €130 Million Pandemic Rescue
The General Court of the European Union has upheld the legality of an Italian state aid scheme designed to support airlines during the COVID-19 pandemic. In a judgment delivered on July 8, 2026, the court dismissed two challenges brought by Ryanair, confirming that the €130 million program did not violate European Union competition law or principles of non-discrimination.
Targeting Carriers Through Licensing
The litigation concerned an aid scheme implemented by Italy between March 2020 and the end of 2021 to compensate air carriers for losses sustained due to government-imposed travel restrictions. Ryanair challenged the legality of these measures, arguing that the eligibility criteria favored national carriers and created a competitive disadvantage for low-cost airlines.
In its judgment regarding cases T-268/21 RENV and T-538/24, the General Court concluded that the Italian scheme was compatible with the internal market. The judges found that the requirement for airlines to hold an Italian license was a proportionate measure to target carriers most affected by the suspension of routes into and out of Italy. According to the court, this condition did not infringe upon the principle of non-discrimination.
Debating Remuneration and Nationality
A central point of contention in Ryanair’s appeal was the “minimum remuneration” condition imposed on airlines to qualify for the aid. The airline argued that this requirement created a discriminatory barrier.
The General Court rejected this argument, stating that the remuneration criteria were applied based on the location of the employees rather than the nationality of the airline. The court further determined that the requirement to hold an Italian license did not act as a deterrent to the freedom of establishment or the free provision of services within the European Union. Consequently, the court found no violation of these fundamental EU treaty principles.
Defining Commission Oversight
The ruling also clarified the extent of the European Commission’s authority when reviewing state aid programs. The General Court reaffirmed that the Commission is permitted to evaluate the general characteristics of a state aid regime to determine its legality.
The court noted that regulators are not required to conduct an individual assessment of every specific grant of aid provided under such a scheme, provided the overarching framework complies with competition rules.
A Complex Legal History
This judgment follows a complex legal history. An earlier decision by the General Court, which had initially invalidated the Italian scheme, was subsequently annulled by the Court of Justice of the European Union in January 2025.
Following that annulment, the scheme was modified and extended to cover the 2021 period, leading to the renewed legal challenges now resolved by the General Court.
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