Lufthansa's Legal Turbulence: EU Court Upholds Ruling Against State Aid
Germany's Lufthansa lost its appeal against an EU court ruling that annulled state aid approval during the COVID pandemic. Ryanair, which challenged the aid, hailed the decision, calling it 'illegal State Aid.' The decision fuels ongoing issues for Lufthansa amidst strikes and cost-cutting measures.
The European Union's Court of Justice confirmed on Thursday that Lufthansa's appeal against a ruling dismissing EU approval of its state aid during the COVID pandemic was unsuccessful.
The court upheld a previous decision, marking a win for rival airline Ryanair, which argued the aid distorted competition. Ryanair has now urged Lufthansa to return 200 million euros in received benefits immediately.
Amidst these legal challenges, Lufthansa faces additional pressures with a pilot union dispute and significant operational cutbacks due to rising costs and labor strikes.
(With inputs from agencies.)
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