Government bailouts of national carriers: not all are strategic assets

IRISH budget carrier Ryanair has challenged the European Commission over its decisions to approve state aid for flag carriers Scandinavian Airlines, TAP Air Portugal, Finnair, Air France, KLM, and Lufthansa.

Its chief executive officer Michael O'Leary is firmly against state intervention in airlines, and has urged governments, right from the start of the pandemic, not to grant airlines financial support. He has also threatened to take legal action if bailouts took off.

Whether a country should grant its national carrier financial aid has always been a debatable topic. In the past when times were good, some governments swept this thorny issue under the carpet or dragged their feet about making a decision.