according to court ruling - The EU Commission is investigating state aid for Condor
The EU Commission is reviewing a multi-billion euro German state aid for airline Condor. After the EU Court ruled the approval of the aid as invalid roughly two and a half months ago, the Commission is now examining in detail if the state support complies with EU law. The Commission emphasizes that the initiation of the investigation does not mean that the aid actually violates EU rules. Germany and other parties involved in the procedure now have the opportunity to present their arguments before the Commission makes a further decision.
In May, the EU Court had declared the approval as invalid and ruled that the Commission had not sufficiently checked if Germany guaranteed a proportionate share of the future value gain of Condor through the aid. The German state had rescued the airline in 2019 with a loan from the KfW development bank, after the then parent company Thomas Cook had gone bankrupt.
Germany intended to support the airline with a so-called restructuring aid in the form of two write-offs worth 90 and 20.2 million Euro, which were part of the October 2019 restructuring plan of 321.2 million Euro. The EU Commission, which ensures that companies do not receive unfair advantages through state aid, had approved the plan in 2021. However, Irish airline Ryanair opposed the plan before the EU Court.
- The EU Court's judgment in May deemed the initial approval of the German state aid for Condor Airline as invalid, stating that the Commission did not sufficiently verify if Germany provided a proportionate share of Condor's future value gain through the aid.
- The European Commission, situated in Brussels, is currently scrutinizing the multi-billion euro German state aid for Condor Airline, ensuring it complies with EU law, following the Court's ruling.
- Germania and other involved parties now have the chance to present their arguments before the European Commission, which will subsequently decide on the validity of the state aid for the troubled European airline, Condor.
- The European Commission, as the guardian of the Treaties, plays a crucial role in EU air traffic regulations, ensuring fair competition in the European Union by preventing companies like Condor Airline from unfairly benefiting from state aid.
