Wizz Air Challenges EU Approval of TAROM’s €95M Aid

Wizz Air Appeals EU Approval of Romanian State Aid for Tarom

Wizz Air has initiated an appeal against the European Commission’s decision to approve 95 million euros in restructuring aid from the Romanian state to its national airline, Tarom. The budget carrier argues that the aid package is not compliant with EU state aid rules.

The appeal was lodged with the EU’s General Court. Wizz Air contends that the European Commission failed to properly assess the aid’s compliance with the EU’s guidelines on rescuing and restructuring non-financial undertakings. The airline believes the aid is disproportionate and risks distorting competition within the European aviation market.

Wizz Air’s primary concern is that the financial support will allow Tarom to continue operating with an unfair competitive advantage, potentially impacting other airlines, including Wizz Air, that operate in the same markets without state subsidies. The airline’s legal challenge aims to ensure a level playing field for all airlines operating within the European Union.

The European Commission’s approval of the aid package in November 2023 followed an in-depth investigation. At the time, the Commission concluded that the aid was necessary to allow Tarom to overcome its financial difficulties and restructure its operations, provided that certain conditions were met to limit market distortion.

The specific details of Wizz Air’s arguments within the appeal have not been fully disclosed. However, the appeal signifies a broader debate within the aviation industry regarding the role of state aid and its impact on market competition, particularly in the context of post-pandemic recovery and the financial challenges faced by many airlines.

Key Points
* 95 million euros: The amount of restructuring aid approved by the European Commission for Tarom.
* November 2023: The month in which the European Commission approved the aid package.

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