The EU Commission was not allowed to approve the federal government’s billions in aid for Lufthansa during the pandemic. The Court of Justice of the EU – this is the first instance at EU level – decided in Luxembourg on Wednesday. However, appeals against the judgment can still be lodged with the European Court of Justice – that would be the second instance.
The travel restrictions in the pandemic had almost brought Lufthansa’s business to a standstill. Tens of thousands of jobs were at stake. Therefore, in spring 2020, the then CDU/CSU-SPD federal government supported the largest German airline with an aid package worth billions. In return, Lufthansa had to undertake to avoid distortions of competition, such as handing over take-off and landing rights in Frankfurt and Munich to the competition.
The EU Commission approved the aid of six billion euros in June 2020. Lufthansa’s competitors Ryanair and Condor contested this decision by the EU Commission before the EU court. The judges partially agreed with them.
The EU Commission made several mistakes in its assessment. On the one hand, she wrongly assumed that Lufthansa could not obtain the necessary funds on the markets. In addition, they misjudged Lufthansa’s considerable market power at certain airports. The obligations imposed on the company have therefore not ensured that effective competition is maintained.