The French Council of State upholds the annulment of a decision by the Commercial Court of Strasbourg finding that the support measures granted to a lowcost airplane company constituted unlawful State aid in application of the private investor test (Ryanair)

Factual Background The claimant, a low cost airline established in Ireland, sought the annulment of the deliberation of the chamber of commerce of Strasbourg and the decisions of its president to sign, in execution of this deliberation, two agreements (principal agreement and supplemental agreement) with Ryanair. With the agreements signed, the chamber committed itself to participate financially, in cooperation with the local authorities, in the financing of actions initiated by the company for the promotion of the region. The purpose of this agreement consisted of giving incentives, by means of subventions, to the low cost company to operate from the airport of Strasbourg-Entzheim and to increase air traffic from there. The chamber was the owner of the concession of the airport.

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Authors

  • Sheppard Mullin (Brussels)
  • European Court of Justice (Luxembourg)

Quotation

Jacques Derenne, Cédric Kaczmarek, The French Council of State upholds the annulment of a decision by the Commercial Court of Strasbourg finding that the support measures granted to a lowcost airplane company constituted unlawful State aid in application of the private investor test (Ryanair), 27 February 2006, e-Competitions Bulletin February 2006, Art. N° 28049

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