Sunday 05 July 2020, 09:53 PM
Lufthansa's supervisory board accepts state aid package
By IANS | Bharat Defence Kavach | Publish Date: 6/2/2020 11:37:21 AM
Lufthansa's supervisory board accepts state aid package

Berlin: German flag carrier Lufthansa's Supervisory Board said that it has voted to accept the government's 9 billion euro ($10 billion) stabilization package.The package of loans and various measures was offered by Germany's Economic Stabilization Fund to help the airline weather the impact due to the coronavirus pandemic, reports Xinhua news agency. Monday's decision also means accepting the promises announced to the European Commission, according to the company.

According to a statement issued last week, Lufthansa said it will be obliged to transfer to one competitor each at the Frankfurt and Munich airports up to 24 take-off and landing rights for the stationing of up to four aircraft. The option is only available to new competitors for one and a half years, and will be extended to existing competitors if no new competitor makes use of it, the airline said last Saturday.

Karl-Ludwig Kley, chairman of the Supervisory Board of Lufthansa said in Monday's statement that the company has made "a very difficult decision." "We recommend our shareholders to follow this path, even if it demands substantial contributions to stabilize their company.

"But it must be said clearly that there is a very difficult path ahead of Lufthansa," Kley said.The package still needs the approval of the competition authorities and the shareholders after it was okayed by both the Management Board and the Supervisory Board of the company. A general meeting with shareholders to discuss the package is scheduled for June 25.

Lufthansa's CEO Carsten Spohr said that stabilizing the flag carrier is not an end in itself, and that the company will work to defend its leading position in global air traffic together with the German government.Lufthansa said that it is foreseeable that international air traffic will not reach the pre-crisis level in the coming years.

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German,Lufthansa,Supervisory,government,$10 billion,stabilization,package,

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