EU regulators okay KLM bailout, tweaks decision after court veto
Reuters
Published Jul 19, 2021 07:24AM ET
Updated Jul 19, 2021 11:16AM ET
By Foo Yun Chee
BRUSSELS (Reuters) - A 3.4-billion-euro ($2.9 billion) Dutch bailout for Air France-KLM's Dutch unit was necessary and proportionate, EU state aid regulators said on Monday after Europe's second-top court annulled their decision in May.
The Luxembourg-based General Court said that the European Commission, which acts as the bloc's competition enforcer, had not provided adequate reasoning why KLM was the only beneficiary of the Dutch aid and why the airline had not benefited from French support given to its parent.
Judges suspended the annulments, giving the Commission another chance to decide on the case.
The Commission said it had addressed the court's concerns and also examined the Dutch and French aid and their effective beneficiaries.
"On this basis, the Commission concluded that the measure is necessary, appropriate and proportionate to remedy a serious disturbance in the economy of a member state," the EU executive said.
Ryanair had challenged the EU decision, one of a raft of appeals which Europe's biggest budget carrier has made against billions of euros granted to airlines since last year.
($1 = 1.1805 euros)
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.