An EU court on Wednesday said the European Commission failed to make its case when approving the bailouts of KLM and Portugal’s TAP, handing a rare victory to low-cost carrier Ryanair. The bloc’s Luxembourg-based General Court ordered the EU regulator to redo its paperwork, and offer clearer arguments on why the bailouts conform with competition law. The court “annuls the Commission’s decision to approve the Netherlands financial aid for the airline KLM amid the COVID-19 pandemic on the grounds of inadequate reasoning”, a statement said. “However, the effects of the annulment (including recovery of the aid) are suspended pending a new decision” by the EU, it added, meaning the airlines are not on the hook to pay back the subsidies for now. The TAP decision involved a low-cost loan from the Portuguese government of €1.2 billion, while KLM received a loan and state guarantees worth €3.4 billion, the court said. Separately, Ryanair lost a challenge to a €10 billion rescue fund in Spain for local carriers. The cases were part of a legal onslaught across Europe by the Irish low-cost carrier to stop bailout deals for the bloc’s legacy airlines. Ryanair has long railed against the...