Lufthansa rescue, Germany-EU Commission agreement

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MILAN – Agreement reached between Germany and the European Commission on the 9 billion plan to save Lufthansa, the largest German airline and the second largest in Europe in terms of passengers carried.The news, confirmed by a spokesman for the EU Commission, is a fundamental step in adopting the plan to avoid the company’s bankruptcy. It is in fact the largest corporate bailout by the German government during the Covid emergency and it is – at the moment – the first one which foresees a direct involvement of the Federal State as an investor (although it may not be the last, given that Merkel has set up a 100 billion fund for rescue operations).
It has also been a testing ground for relations between the first continental economy and the EU institutions. Following tight negotiations, he reports Bloomberg, the airline will reduce planes stationed in Frankfurt and Munich (four per side), freeing up 24 slots (three pairs of take-offs and departures per day, per plane) to make way for more competition.Lufthansa specified in a statement that this is a lower request than the conditions initially posed by Brussels, which had led his board to raise serious doubts about the possibility of accepting public support to survive the pandemic. Slots will be awarded by auction and for a year and a half only companies that do not already have a presence at the airports will be invited to participate: they must be European and not receive recapitalisations or public incentives for Covid.



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https://www.repubblica.it/economia/2020/05/30/news/salvataggio_lufthansa_accordo_germania-commissione_ue-257982736/

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