Lufthansa Greenlights ‘Compromise’ Deal on €9 billion Bailout

By Paul Riegler on 30 May 2020
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A Lufthansa 747-400 in Los Angeles

The Deutsche Lufthansa supervisory board said Saturday it had reached what it termed a “compromise” deal with the European Union and Germany over a €9 billion ($9.89 billion) rescue package.

The board had delayed a decision on the deal on Wednesday because the European Union wanted the airline to give up German takeoff and landing slots, which Lufthansa said would weaken its hubs in Frankfurt and Munich.

The deal requires approval by the European Union’s competition watchdog.

Lufthansa said it will cede takeoff and landing slots to competitors at two primary hubs, and shed some of its fleet.

The Lufthansa Group, which owns Austrian, Brussels, and Swiss in addition to Lufthansa German Airlines, said it has been losing  €1 million every hour since the start of the coronavirus pandemic amidst the travel bans in place across the globe.

The bailout is one of the largest in any country as a result of the coronavirus pandemic.

(Photo: Accura Media Group)

Accura News

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