Air France Loses Bid To End State Aid To Marseille Airport

Law360 (July 11, 2019, 4:58 PM EDT) -- The European Court of Justice on Thursday rejected an Air France appeal contesting a European Commission decision that permitted local state aid to a Marseille airport that Air France alleged had particular benefit to Ireland's Ryanair.

The commission looked into a €7.5 million ($8.4 million) subsidy the airport received to build its low-cost MP2 terminal, as well as fee reductions awarded to budget and regular carriers. The regulator questioned the necessity of the grant, as well as whether the lower fees for airlines might grant the beneficiaries an unfair advantage. However, the commission ended up approving that aid anyway.

In 2016, Air...

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