Judgment of the General Court of 17 February 2021, Ryanair v Commission, T-259/20

• Date: 17 February 2021

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IV. COMPETITION : STATE AID

Judgment of the General Court (Tenth Chamber, Extended Composition) of 17 Februar y

2021

Case T-259/20

Ryanair v Commission

State aid – French air transport market – Deferral of payment of civil aviation tax and solidarity tax on

airline tickets due on a monthly basis during the period from March to December 2020 in the context of

the Covid-19 pandemic – Decisio n not to raise any objections – Aid intended to make good the damage

caused by an exceptional occurrence – Free provision of services – Equal treatment – Criterion of holding

a licence issued by the French authorities – Proportionality – Article 107(2)(b) TFEU – Duty to state reasons

In March 2020, France notified the European Commission of an aid measure in the form of a deferral

of the payment of civil aviation tax and solidarity tax on airline tickets due on a monthly basis during

the period from March to December 2020 ( ‘the deferral of the payment of the taxes’). That deferral,

which benefits airlines holding a French licence,

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involves postponing the payment of those taxes to

1 January 2021 and then spreading payments over a period of 24 months, that is to say until 31

December 2022. The precise amount of the taxes is determined by reference to the number of

passengers carried and the number of flights operated from a French airport.

By decision of 31 March 2020,

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the Commission classified the deferral of the payment of the taxes as

State aid

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compatible with the internal market, in accordance with Article 107(2)(b) TFEU. Pursuant to

that provision, aid to make good the damage caused by natural disasters or exceptional occurrences

is to be compatible with the internal market.

The airline Ryanair brought an action for the annulment of that decision, which is dismissed by the

General Court of the European Union in its judgment today. The General Court examines, for the first

time, the legality of a State aid scheme adopted in order to address the consequences of the Covid-19

pandemic under Article 107(2)(b) TFEU.

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The General Court also clarifies the relationship between

the rules on State aid and the principle of non-discrimination on grounds of nationality laid down in

Article 18(1) TFEU, on the one hand, and the principle of the free provision of services, on the other.

Assessment of the General Court

In the first place, the General Court carries out a review of the Commission’s decision in the light of

the first paragraph of Article 18 TFEU, which prohibits any discrimination on grounds of nationality

within the scope of application of the Treaties, without prejudice to any special provisions contained

therein. However, since Article 107(3)(b) TFEU is, according to the General Court, included in those

special provisions, it examines whether the deferral of the payment of the taxes could be declared

compatible with the internal market under that provision.

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A licence issued under Article 3 of Regulation (EC ) No 1008/2008 of the Europe an Parliament and of the Council of 24 September 2008 on

common rules for the operation of air services in the Community (OJ 2008, L 293, p. 3).

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Commission decis ion C(2020) 2097 final of 31 March 2020 conc erning State aid SA.56765 (2020/N) – France – Covid- 19 – Deferral of the

payment of airline taxes in favour of public air transport undertakings.

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Within the meaning of Article 107(1) TFEU.

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In its judgment of 17 February 2012, Ryanair v Commission (T-23 8/20), the General Cou rt carries out an examination of the lawfulness under

Article 107(3)(b) TFEU, of a State aid scheme adopted by Sweden to d eal with the impac t of the Covid -19 pandemic on the Swedish air

transport market.