Wizz Air Loses Challenge Against TAROM's Capital Increase

By Foo Yun Chee and Bart H. Meijer

(Reuters) – Budget airline Wizz Air on Wednesday lost its challenge against a capital increase for Romanian rival TAROM, which was funded by Romania and approved by EU competition regulators. Europe's second-top court dismissed Wizz Air's arguments.

Wizz Air took its case to the Luxembourg-based General Court after the European Commission stated that the €2 million ($2.15 million) aid to mitigate the impact of COVID travel restrictions complied with EU state aid rules. The EU watchdog had declined to initiate a formal investigation into the matter.

The General Court affirmed, "That aid, amounting to almost €2 million, is compatible with the internal market." Judges noted that the Commission had accurately assessed the proportionality of the aid provided to TAROM.

Wizz Air still has the option to appeal to the Court of Justice of the European Union, Europe's highest court, on legal issues.

Airlines throughout Europe received billions in state aid during the pandemic, leading to lawsuits from competitors such as Wizz Air and Ryanair.

The case is T-827/22 Wizz Air Hungary v Commission (TAROM II; Covid-19).

($1 = €0.9285)