Ryanair intends to challenge the "illegal" state rescue package for Lufthansa in court, the carrier's Chief Executive Michael O'Leary said on Tuesday. According to the top manager, the aid will allow the German airline to "engage in below-cost selling".
"Ryanair will appeal against this latest example of illegal state aid to Lufthansa, which will massively distort competition", O'Leary said.
The agreement will stipulate a waiver of future dividend payments and a cap on management pay. Additionally, government officials will be allowed to occupy two positions in the Supervisory Board of the company.
The shareholders and the European Commission are yet to approve the deal.