The German government has rejected plans by Lufthansa to award bonuses to its top executives, retroactive to a time during the Covid-19 crisis when the airline was relying on state aid.
According to a spokesman for the government, the bonuses violate the agreements made between the two sides. “There will be consultations with Lufthansa. There are interesting legal questions to clear up,” he said on Wednesday.
The German government rescued Lufthansa from bankruptcy in the summer of 2020 after the Coronavirus pandemic brought air traffic to a virtual standstill.
The group received €6.0 billion in state aid, in exchange for 20% of its shares. That support has since been repaid in full by Lufthansa, and the government sold its stake at a profit of over €700 million.
Board members disagreed on bonuses for the bosses
On Monday, the German business newspaper Handelsblatt reported that Lufthansa’s board of directors had given the go-ahead to pay bonuses to top executives for the 2021 and 2022 fiscal years.
There was reportedly disagreement within the board itself on this, as some members believed it violated state aid conditions. There was also criticism because Lufthansa cut thousands of jobs during the coronavirus crisis.
Meanwhile, the unions are also demanding bonuses for staff. According to union representative Daniel Kassa Mbuambi, cabin crew had to accept hefty cuts during the pandemic to save the airline.
Pilots call for special bonus
As a thank-you gesture, the board should give a special bonus, he said, referring to a €3,000 tax-free bonus made possible by the government.
The pilots want to include this bonus in the next wage negotiations, Stefan Hertch, president of the pilots’ union, said on Tuesday.
