EU Court of Justice rules against Wizz Air in state aid case

The EU’s top court has ruled against Wizz Air in a case related to state aid to Romanian airline TAROM. The Luxembourg-based Court of Justice of the European Union (CJEU) confirmed that Romania’s €36.66 million worth of rescue aid to TAROM complied with EU law. The decision comes after Wizz Air questioned the financial support it gave its rivals during the economic strain caused by the pandemic in 2020.

Hungarian low-cost carrier Wizz Air has appealed against the aid package, arguing it gives Romania an unfair advantage. But the European Court of Justice rejected the appeal and upheld the legality of the support measures. Financial support is considered necessary to ensure Romania’s survival amid a severe drop in travel demand due to COVID-19.

The case, designated “Commission C-440/22 P Wizz Air Hungary v”, is closely watched by the aviation industry, which is facing unprecedented challenges due to the impact of the epidemic. The ruling strengthens the EU’s position on providing state aid to businesses facing financial difficulties due to extraordinary circumstances.

The outcome of the case confirms that member states have some leeway to support domestic industries in times of crisis, as long as the aid complies with EU regulations. The decision of the EU Court of Justice is final and cannot be further appealed, effectively ending the case in favor of TAROM and the Romanian government.

Reuters contributed to this article.

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