Wizz Air loses fight against $40 million aid package for Romanian rival By Reuters
© Reuters. People stand next to a Wizz Air aircraft at Ferenc Liszt International Airport in Budapest, Hungary, on August 18, 2022. REUTERS/Bernadett Szabo/File Photo
Written by Foo Yun Chee and Benoit Van Overstraeten
BRUSSELS (Reuters) – Wizz Air has lost its fight over 36.66 million euros ($40.2 million) in rescue aid given by Romania to TAROM airline four years ago after Europe’s top court upheld EU regulators’ decision to grant the aid. .
The European Commission has approved billions of euros in state aid for European airlines during the COVID-19 pandemic, much of which has since been challenged by rivals in court.
Romania approved a loan to meet TAROM’s liquidity needs, repayable after six months.
The Luxembourg-based Court of Justice of the European Union (CJEU) said the EU competition watchdog was correct in approving the support.
“The court dismisses Wizz Air’s appeal regarding the structural assistance provided by Romania to TAROM. That assistance amounts to 36,660,000 euros and is in line with European Union law,” the judge said.
The commission has a mixed record defending its decisions in court. Last month, a lower court rejected the 2020 approval of 7 billion euros in French state aid to Air France.
The case is C-440/22 P Wizz Air Hungary v Commission.
(1 dollar = 0.9121 euro)
