International law firm Bird & Bird achieved a major victory for Romanian airline Carpatair in Case T-522/20 Carpatair v Commission when the General Court of the European Union annulled the European Commission’s approval of Romanian State aid to Timișoara International Airport in favour of Wizz Air.
In 2010, the Romanian regional airline Carpatair S.A. submitted a complaint to the European Commission challenging aid granted by the Romanian authorities to Timișoara International Airport in favour of Wizz Air.
On 8 February 2023 the General Court found that the Commission committed several errors of law when examining whether the measures it considered were selective and whether they conferred an advantage.
The case outlines some complex legal issues related to State aid: first, the increase in discounts on airport charges (from 72% to 83%) granted by Timișoara Airport to Wizz Air confer a selective advantage to Wizz Air; second, the General Court concludes that the so-called Market Economy Operator Principle (MEOP) test was wrongly applied to the agreements between Wizz Air and Timișoara Airport. Bird & Bird partner José Rivas, who led the court proceedings before the General Court, succeeded in proving that the Commission committed several errors of law, as a result of which the General Court annulled the European Commission’s approval of State aid to Timișoara International Airport in favour of Wizz Air.
Jose Rivas, lead partner at Bird & Bird says: "This judgment of the General Court is significant for the aviation industry because it confirms that all carriers, including low-cost carriers, are subject to EU State aid law. The case is an excellent example of Bird & Bird’s capabilities to advise on the interplay between EU and national laws in the aviation and competition law space."
CEO of Carpatair, Nicolae Petrov adds: "We are very glad and grateful to the team of Jose Rivas at Bird & Bird for the great job in this extremely complex state aid law case. It was a real pleasure and great honour to work with such a competent, efficient and very dedicated team of lawyers. Thank you very much, Bird & Bird, thank you very much Jose Rivas, Serge Durande and Ana Manzaneque! Well done!"
Bird & Bird represented Romanian airline Carpatair in an action for annulment of the Commission's State aid Decision “SA.31662- Romania Timisoara International Airport- Wizz Air” before the General Court.
Carpatair challenged the Commission's conclusion regarding the non-existence of State aid for Wizz Air. The Commission was supported by Wizz Air and the Airport operator of Timișoara Airport, both acting as interveners in Case T-522/20.
When the Commission announced suspension and reimbursement injunctions in its 2011 Opening Decision, Carpatair obtained judgments from the Romanian courts ordering the reimbursement of certain aid and damages. This litigation strategy has been put at risk nine years later when the Commission changed its position 180 degrees and published a final decision in 2020 finding that the measures do not constitute aid.
This last Decision of the Commission has now been annulled by the judgment of the General Court in Case T-522/20.
For more information, please see the press release of the Court of Justice of the European Union.
