Low-cost airlines Ryanair and Malta Air won a court case Wednesday against the European Union’s decision to approve billions of euros in state aid by the French government to Air France and holding company Air France-KLM during the COVID-19 pandemic. Ryanair has filed several court challenges against measures introduced by EU countries to help some airlines weather the fallout of coronavirus restrictions. The Irish airline welcomed the decision and urged the European Commission “to order France to immediately recover this multi-billion euro illegal state aid package.” The bloc’s 27 members must seek approval from the commission — which is the EU’s executive branch — when granting financial support to companies. Many countries across Europe did so to help keep their airlines afloat during the pandemic. In 2020, French authorities notified the European Commission of an aid measure of E7b, which was supposed to solely benefit Air France, to the exclusion of all the other companies in the Air France-KLM group. A year later, France told the commission about plans for E4b recapitalization of Air France and the holding company. In both cases, the European Commission didn’t raise objections. But the European General Court ruled that the Air France-KLM holding and KLM “were capable of benefiting, at least indirectly, from the advantage granted by the state aid at issue” and annulled the European Commission’s decisions. “Where there are grounds to fear the effects on competition of an accumulation of state aid within the same group, the onus is on the Commission to exercise particular vigilance in examining the links between the companies belonging to that group,” the court said.<br/>
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Etihad Airways and China Eastern Airlines have signed a memorandum of understanding to deepen their strategic co-operation in commercial and operational areas, in a move they say will facilitate the latter’s ambitions to serve Abu Dhabi. Building on an existing partnership that already involves a codeshare arrangement – which will be expanded – the two carriers say they are exploring options to work together in areas such as reciprocal loyalty programmes, air cargo, MRO, ground handling, catering, lounge access, staff training and sustainability initiatives. Etihad notes the move coincides with the opening of Terminal A at Abu Dhabi International airport and says the MoU will help to create “a robust platform for China-UAE air traffic and establish an ideal launchpad for connections between China, the Middle East and Africa”. On plans for China Eastern to serve Abu Dhabi, the airline’s president Li Yangmin states: “The connection between China Eastern’s Shanghai hub and Etihad’s network through Abu Dhabi will significantly enhance our footprint in the Middle East and Africa. “It supports our commitment to the construction of the Belt and Road Initiative and the ‘Aerial Silk Road’, stimulating economic, trade and cultural exchanges between China and partner countries.” Noting the decade-long partnership between the two carriers, Etihad CE Antonoaldo Neves adds: “I am highly encouraged by the momentum of our co-operation, and I look forward to seeing further success. “It also marks a significant development of the direct links between Abu Dhabi and China and underscores the confidence of one of the most influential Chinese carriers in Etihad.”<br/>
China Southern Airlines launched a direct passenger route linking south China's Guangzhou and Port Moresby, the capital of Papua New Guinea (PNG), on Wednesday. It is the first regular commercial air route connecting the Chinese mainland and an island country in the Pacific. The CZ5055 flight carrying 132 passengers landed at Port Moresby International Airport on Wednesday morning, marking the inauguration of the route. The round-trip service is scheduled once a week, with the outbound flight departing from Guangzhou at 1 a.m. (Beijing Time) on Wednesday and the return flight at 9 a.m. (local time) on Thursday from Port Moresby, according to the airlines. PNG is the first Pacific island country to sign the memorandum of understanding and cooperation plan with China on Belt and Road cooperation and has become China's largest trading partner in the region.<br/>