BRUSSELS, July 19 (Reuters) – A 3.4-billion-euro ($2.9 billion) Dutch bailout for Air France-KLM’s (AIRF.PA) Dutch unit was needed and proportionate, EU state support regulators stated on Monday after Europe’s second-top court docket annulled their resolution in Might.
The Luxembourg-based Basic Court docket stated that the European Fee, which acts because the bloc’s competitors enforcer, had not supplied sufficient reasoning why KLM was the one beneficiary of the Dutch support and why the airline had not benefited from French assist given to its father or mother.
Judges suspended the annulments, giving the Fee one other probability to resolve on the case.
The Fee stated it had addressed the court docket’s considerations and in addition examined the Dutch and French support and their efficient beneficiaries.
“On this foundation, the Fee concluded that the measure is important, acceptable and proportionate to treatment a critical disturbance within the economic system of a member state,” the EU govt stated.
Ryanair (RYA.I) had challenged the EU resolution, one in all a raft of appeals which Europe’s greatest finances service has made towards billions of euros granted to airways since final yr.
($1 = 1.1805 euros)
Reporting by Foo Yun Chee; enhancing by Jason Neely
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