Airlines contest European Commission state aid decision – and win

A recent tax dispute between the European Commission and Aer Lingus and Ryanair came out in favour of the airlines. According to the Commission, Aer Lingus and Ryanair had received State aid because they were subject to a low tax on air travel, compared to the otherwise applicable taxation. The State aid had to be repaid but the airlines contested the calculations of the Commission and the General Court found for the airlines. The Court states that the Commission should limit itself to ordering recovery of the advantage actually retained by the airlines, taking into account the competitive situation and the possibility that the advantage could have been passed on to passengers through lower ticket prices.

Read the full commentary by CBS Economics Department Associate Professor Grith Skovgaard Ølykke in European State Aid Law Quarterly: http://www.lexxion.de/estalinner/inner/pdf/estal3_2015/estal_2015_03-023_2015-08-24-16.01.302.pdf