Lufthansa agrees to EU state aid package
The German airline Lufthansa is ready to give competitors part of the take-off and landing slots at the airports of Frankfurt and Munich. This will allow her to receive assistance from the German state in the amount of 9 billion euros.
The German government settled a dispute with the European Commission over a 9 billion-euro bailout of Lufthansa, clearing the way for the carrier to accept the rescue package https://t.co/AzgQhGmWBN via @business
— Alex Wang, MD (@drwangmd) May 30, 2020
The board of the German aircraft concern Lufthansa has accepted the terms of the European Commission (EC), under which the German state can allocate a financial assistance package for this company of 9 billion euros, Lufthansa reported on the night of Saturday, May 30. Under the terms of the agreement, Lufthansa is obliged to cede competitors at the airports of Frankfurt and Munich with a maximum of 4 parking spaces and a maximum of 24 take-off and landing slots. These conditions must still be approved by the supervisory board of the aircraft’s concern.
For its part, the European Commission has confirmed the agreement with the German government on the conditions for the provision of financial assistance to Lufthansa. “We take note of the guarantees offered by Germany to protect competition”, the EC representative said.
Brussels noted that they expect from the Federal Republic of Germany a formal notice regarding the agreement, after which the EC will make a final decision. The European Commission assured that Germany’s statement regarding assistance to Lufthansa, as well as all support measures against the backdrop of the coronavirus pandemic, will be considered as a priority.
