The aid granted by the Belgian government to Brussels Airlines, a subsidiary of the German airline Lufthansa, has been approved by the German Economic Stabilisation Fund, the German Finance Ministry says on Tuesday.
The Fund announced that Lufthansa can accept state aid from foreign countries, in particular Austria, Switzerland and Belgium.
The Belgian Federal Government and Lufthansa reached an agreement in July on a €460 million stabilisation plan for Brussels Airlines. The Belgian State will grant a €290 million loan to the company while Lufthansa will inject €170 million into its subsidiary.
In exchange for the six-year loan, Lufthansa promises in particular to keep the Brussels Airlines brand and to maintain the company’s headquarters in Belgium. The company will also continue to operate under a Belgian licence. The State will also have two seats on the board of directors.
The European Commission has yet to validate the plan.