Wizz Air loses fight against $40 million rescue aid for Romanian rival

By Foo Yun Chee and Benoit Van Overstraeten

BRUSSELS (Reuters) – Wizz Air on Thursday lost its fight against 36.66 million euros ($40.2 million) of rescue aid granted by Romania to airline TAROM four years ago, after Europe’s top court backed EU regulators’ decision to approve the aid.

The European Commission approved billions of euros in state aid to European airlines during the COVID-19 pandemic, much of which was subsequently challenged by rivals in court.

Romania granted a loan to finance TAROM’s liquidity needs repayable after six months.

The Luxembourg-based Court of Justice of the European Union (CJEU) said the EU competition watchdog was right to clear the aid.

“The Court dismisses Wizz Air’s appeal concerning the rescue aid granted by Romania to TAROM. That aid, amounting to 36,660,000 euros, is compatible with European Union law,” judges said.

The Commission has a mixed record defending its decisions in court. Last month, a lower tribunal threw out its 2020 approval of 7 billion euros in French state aid to Air France.

The case is C-440/22 P Wizz Air Hungary v Commission.

($1 = 0.9121 euros)