Low-cost airline Wizz Air has lost its challenge against a capital increase for Romanian state airlines and rival Tarom funded by Romania and approved by EU competition regulators.
Europe’s second-top court dismissed its arguments on Wednesday after Wizz Air took its case to the Luxembourg-based General Court.
The European Commission said the 2 million euros in aid to offset the impact of travel restrictions during the Covid-19 pandemic were in line with EU state aid rules.
The EU watchdog had declined to open a formal investigation into the case.
“That aid, amounting to almost 2 million euros, is compatible with the internal market,” the Luxembourg-based General Court said.
Judges said the Commission had correctly assessed the proportionality of the aid granted to Tarom. Wizz Air can appeal to the Court of Justice of the European Union, Europe’s top court.
European state airlines received billions of euros in state aid during the pandemic, triggering lawsuits from budget rivals such as Wizz Air and Ryanair.
