Luftscamsa - EU Court Confirms €6 Billion Pandemic Aid Was Illegal

The Court of Justice of the European Union (CJEU) dismissed an appeal by Deutsche Lufthansa AG on Thursday regarding a €6 billion state aid package. The final ruling confirms that the European Commission was wrong to approve the funding during the pandemic. The court found that the bailout broke EU rules and gave the carrier an unfair advantage over other airlines. Judges recorded that every error identified in the original approval process was sufficient on its own to invalidate the measure as a whole. Through its investigation, Pax Sentinel has found that this decision ends a long legal fight by management to keep taxpayer money. While taking the aid, the airline also used [ghost flights to block competitors](/en/article/SpX6Gwjt_pandemic-era-legacy-reveals-tactical-market-blocking) from using airport slots. Calculation Errors The court focused on how the Commission calculated the price for the German government’s shares in the airline. Judges recorded that the Commission allowed the shares to be priced at a fixed rate instead of using the current market price. This mistake meant the government did not receive the correct payment for its investment. While the airline tried to argue other points regarding its finances, it failed to prove that the calculation was correct. The ruling makes it clear that regulators cannot approve aid packages that ignore standard market rules. By breaking these rules, the Commission helped the group in a way that had no legal basis. Repayment Demands Ryanair and Condor, the airlines that first challenged the aid, welcomed the court's decision. A spokesperson for Ryanair said the bailout helped a failing company and hurt fair competition in Europe. The Irish airline is now calling for Lufthansa to return €200 million in benefits immediately. This demand follows a history of the group [putting its corporate image ahead of its service](/en/article/D1R9Wov1_lufthansa-admits-its-status-as-nazi-model-enterprise). Management stated on Friday that it has noted the court’s decision. A spokesperson for the group said the airline will work with the European Commission on an ongoing investigation to fix the legal errors from the original approval. Operational Problems This legal defeat comes as the group faces major problems with its flights and staff. Management recently said it will [cancel 20,000 summer flights](/en/article/VldfIQm0_20-000-summer-flights-scrapped) and stop using several regional planes. Pax Sentinel previously reported that the [closure of the CityLine subsidiary](/en/article/O3cGpkAg_tariff-evasion-drives-cityline-shutdown) was a planned move to avoid worker contracts. The group’s current flight cuts suggest it is focusing on its bank balance rather than providing a reliable network for passengers. Through its investigation, Pax Sentinel has found that the carrier is using fuel costs and global events as excuses to hide its own planning failures. This final court ruling adds more pressure on the board to handle potential fines while its labor fights continue. Pax Sentinel maintains that the carrier’s use of illegal aid is a warning about its financial health. The organization urges travelers to watch for more flight cuts as the group deals with its legal and financial debts.