Central European budget airline Wizz Air has lost a legal challenge over a capital injection for Romanian flag-carrier Tarom.
The European Union’s General Court has ruled that the financial package, nearly €2 million ($2.1 million), is compatible with state aid regulations.
Tarom was granted the support as compensation for damage suffered on 14 international routes, due to the Covid-19 pandemic, over the second half of 2020.
The European Commission had previously cleared the aid package in April 2022.
Wizz Air’s legal challenge to this decision has failed after the General Court dismissed its action.
Not only was the compensation permitted, the court has ruled, but the Commission also “correctly assessed the proportionality” of the support.
“The measure at issue did not give rise to overcompensation,” it adds.
It points out that the Commission accurately calculated the losses Tarom suffered, and verified that the airline had taken reasonable measures to limit the damage.
Wizz Air’s arguments that the Commission had not taken into account previously-granted rescue aid for Tarom were also rejected.
