The General Court of the European Union has dismissed Ryanair’s attempt to overturn the European Commission’s approval of €2.55 billion in restructuring aid granted by Portugal to TAP. This marks a significant development in what is becoming a long series of legal battles between the Irish carrier and the EU institutions. The ruling, delivered on 10 December 2025, upholds the Commission’s original assessment. It confirms TAP’s eligibility for support under the EU’s State aid rules. The Ryanair TAP decision reinforces the Commission’s discretion in approving support measures for airlines deemed essential to national economies.
Background of the Decision
In June 2021, Portugal notified the Commission of its intention to provide restructuring aid to TAP. This aid comprised a loan guarantee, recapitalisation, and the conversion of an earlier state loan into equity. After reviewing the measure under the EU Guidelines for State aid for rescuing and restructuring non-financial undertakings in difficulty, the Commission concluded in December 2021 that the package constituted State aid. However, it was found to be compatible with the internal market. The total support authorised reached €2.55 billion. Ryanair subsequently brought an action before the General Court seeking annulment of this approval, leading to the decision published today.
Court Confirms TAP’s Eligibility for State Aid
The General Court found that the Commission had sufficiently demonstrated TAP’s eligibility for restructuring aid. Ryanair had argued that TAP’s financial difficulties were not adequately assessed and that the airline group should not have qualified for support. However, the Court ruled that the Commission had correctly examined both the origin of TAP’s difficulties and the group’s capacity to address them. This confirmed the soundness of the reasoning underpinning the Ryanair TAP decision.
Necessity and Proportionality Upheld in Ryanair TAP Decision
Central to the Ryanair TAP decision was whether the aid met an objective of common interest and complied with the R&R Guidelines. The Court agreed with the Commission that TAP could not have secured financing on the market at the necessary scale without State intervention. Therefore, the restructuring aid was considered necessary to prevent TAP’s collapse. Such a scenario would have had major economic and social repercussions in Portugal. The Court also accepted the Commission’s assessment that the measure was appropriate and proportionate.
Court Rejects Ryanair’s Criticisms of the Restructuring Plan
Ryanair had argued that the restructuring plan approved as part of the Ryanair TAP decision lacked realism and coherence. It also claimed that the Commission failed to establish TAP’s long-term viability. The General Court disagreed, noting that the Commission had scrutinised the airline’s financial projections, strategic adjustments, and operational reforms. These were considered within a four-to-five-year timeframe. This restructuring horizon was deemed reasonable, especially given that the 2021 decision was issued amid ongoing disruption caused by the COVID-19 pandemic. The Court emphasised that the Commission had provided sufficient reasoning even where confidentiality required redaction of sensitive data.
No Violation of EU Principles in Ryanair TAP Decision
Another element of Ryanair’s challenge concerned alleged breaches of non-discrimination and the freedoms to provide services and establishment. The Court firmly dismissed these claims, holding that the Commission had undertaken a complete and balanced examination of potential negative effects. It had not infringed any fundamental EU principles. The Ryanair TAP decision thus stands as a fully reasoned and legally sound confirmation of the Commission’s original findings.
Ryanair now has the option to appeal the ruling to the Court of Justice of the European Union. However, this can only be done on points of law, within two months and ten days of notification.
Source: https://curia.europa.eu/jcms/upload/docs/application/pdf/2025-12/cp250154en.pdf
