Irish low-cost airline Ryanair will appeal the 9 billion euro bailout deal that the German government has reached with Lufthansa to help the airline survive the coronavirus pandemic, Ryanair CEO Michael O'Leary said on Tuesday, Reuters reports.
On Monday, the German government agreed with the struggling airline Lufthansa on financial support worth 9 billion euros, equivalent to 95 billion kronor. The financial contribution also means that the government will take a 20 percent stake in Lufthansa.
However, Irish low-cost airline Ryanair believes that the state aid makes it possible for Lufthansa to sell flights at a sub-par price.
”"Ryanair will appeal this latest example of illegal state aid to Lufthansa, which will massively distort competition," CEO Michael O'Leary wrote in a statement, according to Reuters.
The Ryanair CEO highlights, among other things, that it will be impossible for Austrian subsidiary Lauda, as Lufthansa-owned Austrian Airlines is in negotiations for support of 767 million euros from the Austrian government. Lufthansa has already secured credit guarantees from Switzerland for Swiss Airlines and is in talks with the Belgian government about support for Brussels Airlines.
Ryanair has reported both Sweden and France to the European Court of Justice this spring because the governments of the respective countries have given support to airlines registered in the countries. Michael O'Leary has previously said that he would prefer the support to be based on how much the company serves different countries. Ryanair, which is based in Ireland but which mainly flies in the rest of Europe, could thus receive more financial support, writes the Irish Times.
Source: di.se
