Ryanair to appeal Lufthansa's €9bn German bailout
Ryanair is to challenge a €9bn (£8bn) German bailout for Lufthansa, saying the "illegal state aid" will distort the market by allowing the flag carrier to sell cheaper tickets than competitors.
Michael O'Leary, Ryanair's chief executive, said the taxpayer-backed support package means Lufthansa will be able to sell seats at a loss - dealing a hammer blow to his firm as it tries to compete in Germany.
Lufthansa secured a rescue deal on Monday after weeks of discussions with the authorities in Berlin, who will take a 20pc stake in the company.
Mr O'Leary said: "Ryanair will appeal against this latest example of illegal state aid to Lufthansa, which will massively distort competition and level playing field into provision of flights to and from Germany for the next five years.
"Whenever there is a crisis, Lufthansa’s first reflex is to put its hand in the German government’s pocket."
The outspoken Ryanair boss has been a longstanding critic of airlines receiving government bailouts.
Last week he said he was in favour of state aid which is made available to all companies equally - such as furlough schemes - but was against specific support for individual carriers.
Mr O'Leary claims individual rescue packages are unfair because they support the very weakest airlines while stacking the odds against those with more robust finances, such as his own.
Air France-KLM was handed a €7bn bailout by the French government earlier this month.
Chancellor Rishi Sunak has resisted using taxpayer cash to prop up struggling carriers and told airlines to exhaust all other options before seeking state support. However, the Government could still take shareholdings in key industries under its Project Birch plans.
Airline chiefs have also written to the Government to ask for a reprieve from planned quarantine measures for arrivals to the UK that would heap further pressure on their already strained finances.
Ryanair shares jumped more than 10pc to €11.80 and other airline stocks also rose sharply amid rising hopes that travel lockdowns could be eased.
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Separately, Latam Airlines, Latin America's largest carrier, filed for bankruptcy protection in New York after the coronavirus pandemic led to a collapse in demand.
Under the Chapter 11 petition, the Chilean carrier will be allowed to keep operating as it attempts to come up with a plan to pay its creditors.
