Vestager's Statement on Lufthansa and SAS State Aid Cases

European Commission

"Today's judgments by the General Court annul the Commission's 2020 decisions raising no objections to State aid granted by Germany to Deutsche Lufthansa AG and approving Danish and Swedish plans to contribute up to the recapitalisation of SAS.

We will carefully study the judgments and their implications as a matter of urgency. We are aware of the uncertainty the judgments generate for the airlines concerned and the aviation sector at large. While it is too early to give any indication as to what the appropriate course of action may be, at this stage all options are on the table.

On 25 June 2020, the Commission approved, under the State aid Temporary Framework, German plans to contribute €6 billion to the recapitalisation of Deutsche Lufthansa, the parent company of Lufthansa Group, subject to certain commitments to limit distortions of competition. The recapitalisation measures have been fully redeemed by Deutsche Lufthansa.

By the SAS decision 11 August 2020, the Commission approved the Danish and Swedish aid to contribute up to SEK 11 billion (approximately €1 billion) to the recapitalisation of SAS on the ground that it was compatible with the internal market under Article 107(3)(b) TFEU as interpreted by the State aid Temporary Framework. At this stage, the Commission is in close and constructive contact with the Danish and Swedish authorities on the State aid implications of the ongoing restructuring of SAS. There is no immediate and direct link between today's judgments and the ongoing work on the future restructuring of SAS."

/Public Release. This material from the originating organization/author(s) might be of the point-in-time nature, and edited for clarity, style and length. Mirage.News does not take institutional positions or sides, and all views, positions, and conclusions expressed herein are solely those of the author(s).View in full here.