SAS wins covid state aid case

Scandinavian Airlines has not received illegal state aid from Denmark and Sweden in connection with the lockdown during the covid pandemic, according to the conclusion reached by the European Court of Justice in a new ruling. This is a relief for SAS after the case has been heard in several instances in the European Court of Justice. Thursday’s decision is final, so the airline can now put the case behind it.
     Ryanair brought the action because it considered there was discrimination between the airlines. Ryanair points out that SAS received a guarantee of credit of a maximum of SEK 1.5 billion provided by Denmark and Sweden. The money was intended as partial compensation for cancellations and changes to SAS’ flights during covid. Here, SAS and other airlines were hit hard by travel restrictions aimed at limiting the spread of the disease. However, according to Ryanair, the help from Denmark and Sweden gave SAS an unfair advantage in competition with Ryanair and other airlines.
     The European Court of Justice rejected this claim with its ruling Thursday. The aid from the Danish and Swedish governments was in accordance with EU law, the court concluded. This is because SAS had significantly larger market shares than its closest competitor which was also one of the reasons why SAS was more affected by the restrictions. /ritzau/