9 billion euros in state aid to Lufthansa accepts EU conditions for bailout package

9 billion euros in state aid to Lufthansa accepted EU requirements for rescue paketdas billion rescue package for the ailing Lufthansa has taken a further hurdle. Early Saturday morning an agreement was reached.0 comments concerning the travels ready to Start and land rights to submit: the in the Corona-crisis pressure on troubled Airline Lufthansa.KEYSTONEDie Lufthansa is obliged, therefore, to transfer to the airports of Frankfurt and Munich, a competitor to the stationing of up to four aircraft. This corresponds to up to 24 takeoff and landing rights. KEYSTONEDer the Supervisory Board of Lufthansa must now agree to the rescue package, including the requirements of the EU. KEYSTONE1 / 3

The Executive Board of Lufthansa has decided in the night of Saturday to accept the EU Commission’s required conditions for the supply of landing rights. So Lufthansa took an important hurdle for the state aid, with a planned participation of the Federal government. The German government wants to support the in the Corona-crisis pressure on troubled Airline with a 9 billion Euro rescue package. Lufthansa threatens to otherwise, the money going out.

the scope of The from the point of view of the EU Commission required Commitments has been reduced compared to initial plans. Lufthansa is obliged, therefore, to transfer to the airports of Frankfurt and Munich, a competitor to the stationing of up to four aircraft. This corresponds to up to 24 takeoff and landing rights.

This Option for at least a year and a half, only new rivals at the airports in Frankfurt and Munich. If no new competitors of the Option to make use of, will be extended the Option on existing competitors in the respective airports.

The Start – and landing rights (Slots) to be allocated in a bidding process and only one of the European competitors will be taken, has not received substantial government recapitalisation due to the corona crisis.

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Of which could benefit the Irish low-cost airline, Ryanair, wants to come up without state aid due to the crisis and the planned entry of the German state at the Lufthansa violently has criticized. Ryanair flies to so far Germany’s largest airport Frankfurt, but is not represented in Munich. Conversely, the UK offers a low-cost airline Easyjet flights from Munich, has pulled out of Frankfurt, but are only just back.

The Supervisory Board of Lufthansa must now agree to the rescue package, including the requirements of the EU. The company will then be convened in the port in a timely manner, an extraordinary General meeting, the approval of the shareholders of the package to obtain.

fear of interference

The Lufthansa had blocked according to insiders against a high state share, because they feared a rejection of the shareholders. The main reason concerns that political interests may interfere with the operational side of the business but were.

The German government and Lufthansa had agreed on the Monday after week-long negotiations on 9 billion euros of state aid in the Form of 3 billion euros in loans, and 6 billion of silent participations and a share package for the state at the Airline by 20 percent. Already these talks had dragged on for long.

EU competition Commissioner Margrethe Vestager announced on Friday in Brussels, the EU Commission, it is because of the market power of Lufthansa, only to eliminate the state aid resulting distortions of competition. The EU authority shall also in the case of equity, the state is pumping in a company, more stringent level of the standards as for loans.

The EU Commission made after the agreement early Saturday morning said she was taking Germany’s proposed Commitments to ensure competition on the knowledge.

(SDA)

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