Published by Global Banking and Finance Review
Posted on December 10, 2025
1 min readLast updated: January 20, 2026
Ryanair's legal challenge against the €2.55 billion state aid to TAP was dismissed by the General Court, supporting the European Commission's decision.
BRUSSELS, Dec 10 (Reuters) - Europe's second-highest court on Wednesday dismissed Ryanair's action against a decision by the European Commission to approve a restructuring aid of 2.55 billion euros ($2.97 billion) granted by Portugal to local airline TAP.
"The General Court considers that the Commission established that TAP was eligible for restructuring aid ... furthermore, it could not be alleged that the Commission had carried out an incomplete examination of the negative effects of the aid measure at issue," the Luxembourg-based General Court said.
Ryanair, Europe's biggest budget airline had launched more than 20 lawsuits against the European Commission for approving billions of euros in state aid to airlines during the pandemic saying the support gave those carriers an unfair advantage.
($1 = 0.8581 euros)
(Reporting by Benoit Van Overstraeten; Editing by Foo Yun Chee)
The European Commission is the executive branch of the European Union responsible for proposing legislation, implementing decisions, and managing the day-to-day operations of the EU, including overseeing state aid regulations.
Restructuring aid is financial support given to companies in difficulty to help them restructure their operations and return to viability. It is often subject to strict conditions to prevent market distortion.
Ryanair is an Irish low-cost airline known for its budget-friendly fares and extensive route network across Europe. It is one of the largest airlines in Europe by passenger numbers.
TAP Air Portugal is the flag carrier airline of Portugal, providing domestic and international flights. It has received state aid for restructuring during challenging economic periods.
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