Ryanair loses Croatia Airlines state-aid case
November 16, 2022
Ryanair's attempt to overturn a decision by the EU to award Kn88.5 million ($12.2 million) in state aid to Croatia Airlines as compensation for Covid-19-related losses has been dismissed by a European court. In a 9 November ruling, the European General Court dismissed action taken by Ryanair which sought to annul a decision by the European Commission on 30 November 2020 to approve a direct grant of Kn88.5 million from the Croatian government to Croatia Airlines. In addition to dismissing Ryanair's action, the court ordered the Irish carrier to pay its own legal costs and those of the Commission. It ordered the Croatian government to cover its own costs. "In view of the significance of Croatia Airlines, especially as regards its contribution to the connectivity of Croatia throughout the year, it must be concluded that the grant of the aid measure at issue only to Croatia Airlines was an appropriate measure to achieve the objective of remedying the damage caused by the travel ban and by the other restrictive measures adopted in the context of the Covid‑19 pandemic," says the court in its ruling. Earlier this year Ryanair lost its appeal against state aid provided to Finnair, and the previous year it lost a legal challenge against the provision of financial support to Austrian Airlines on state-aid grounds. Ryanair has brought a number of appeals against state aid granted to EU-based carriers during the Covid-19 pandemic. In addition to Finnair, Austrian and Croatia Airlines, it has sought to overturn decisions to approve state aid for SAS, Air France and Condor. In May 2021, Ryanair's complaints against state aid approved for TAP Air Portugal and KLM resulted in an annulment by the General Court, although the effects of the annulment – including any recovery of the aid – were suspended.
US DOT fines six carriers for 'extreme' refund delays
November 16, 2022
The US Department of Transportation has fined six international carriers a total of $7.25 million for extreme delays in providing refunds, on top of the more than $600 million they have already refunded to passengers whose flights were cancelled or changed significantly. The DOT says the fines, assessed on 14 November, are part its ongoing effort to ensure that US-based travellers receive refunds owed to them by airlines, adding that during the pandemic it has received "a flood" of complaints about airlines’ failures to provide timely refunds. "When a flight gets cancelled, passengers seeking refunds should be paid back promptly," Transportation secretary Pete Buttigieg states. "A flight cancellation is frustrating enough, and you shouldn’t also have to haggle or wait months to get your refund." The DOT has fined US-based Frontier Airlines $2.2 million, related to $222 million in refunds paid; Air India $1.4 million, with $121.5 million in refunds; TAP Portugal $1.1 million, with $126.5 million in refunds; Aeromexico and El Al $900,000 apiece, with $13.6 million and $61.9 million in refunds, respectively; and Colombian carrier Avianca $750,000, on top of $76.8 million in refunds paid. The DOT's Office of Aviation Consumer Protection has so far in 2022 assessed $8.1 million in civil penalties, the most it has ever issued in a single year.
Blue Air 737 seized by Romanian government
November 15, 2022
Blue Air confirms that one of its Boeing 737-500s has been seized by the Romanian government's tax agency, while another belonging to Air Lease Corporation is no longer part of the grounded carrier's fleet. The Romanian airline, which ceased operations on 6 September citing "an unforeseen situation" involving the seizure of its accounts by the government, has confirmed that a 737-500 registered as YR-AME and parked at Bacau airport "is subject to a seizure instituted by ANAF". Another 737-500, registered as YR-BMQ and parked at Cluj airport, "is no longer part of the Blue Air fleet, as its grounding constitutes an abuse subject to legal proceedings by the new aircraft operator". Fleets data shows that this aircraft is owned by ALC and was transferred to a new operator – a Romanian start-up called Hello Jets – on 13 October. Local reports suggest that ANAF had also attempted to seize this aircraft. ANAF declines to comment on the matter. Data shows that the aircraft Blue Air says has been seized is owned by SC Blue Air Airlines Management Solutions. The carrier is listed as having a total of four 737-500s and two 737-300s, all of which are in storage. One of the -300s is under operating lease from Pearl Aircraft Corporation.