Last June, the Dutch state notified the European Commission of an aid measure in favor of airline KLM, a subsidiary of the holding Air France-KLM, in order to be able to deal with the corona crisis. The notified aid, amounting to a total of EUR 3,4 billion, consisted of a state guarantee for a loan to be provided by a consortium of banks and a state loan. Air France, a subsidiary of KLM, received support consisting of a state guarantee and a shareholder loan of 7 billion euros from the European Commission to deal with the corona crisis last year.

"The General Court annuls the Commission decision to approve the financial support provided by the Netherlands to the airline KLM in the context of the COVID-19 pandemic on the grounds of insufficient reasoning."

The European Court now declares it decision of the European Commission to approve the financial support of 3,4 billion euros granted by the Dutch state to airline KLM. This is due to insufficient explanation of the loan package by the European Commission. In view of the harmful consequences of the pandemic for the Dutch economy, the European Court of Justice is suspending the annulment until the Commission comes with a new decision. KLM does not have to repay the loan immediately. The case against the European Commission has been brought by the Irish budget airline Ryanair, they think the state aid to KLM is unfair competition.

Also read: Eurostar saved with aid package

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