Lufthansa: Germany and European Commission agree on key points
Saturday, 30 May 2020
Germany’s government and the European Commission reached agreement on key points in negotiations on a bailout for the Lufthansa Group, on Friday.
The two sides agreed that Lufthansa, Europe’s premier airline, would give up some time slots at Frankfurt and Munich airports, the German news agency, DPA, reported, quoting government sources.
According to the Handelsblatt economic daily, the airline would give up eight planes and 25 associated time slots at its two main airports in Germany, Frankfurt and Munich.
Under the German plan to save Lufthansa, the parent company of Brussels Airlines, Berlin will take over 20% of the group for €6 billion and guarantee a loan of €3 billion. This will be the first time the State of Germany will reinvest in the capital of the company since it was completely privatized in 1997.
In exchange, the European Commission required Lufthansa to give up its takeoff and landing slots, which are highly prized by airlines, or reduce the number of its planes based in Germany, demands dismissed by shareholders.
The outcome of the negotiations could have repercussions for Brussels Airlines, for which discussions on possible support are also in progress with the Belgian Government.