Tuesday, July 7, 2020

EU approves € 150 million Vienna support for Austrian Airlines

The Lufthansa subsidiary, like all airlines, suffered particularly from the coronavirus crisis.
The European Commission approved on Monday the public support of 150 million euros granted by Austria to the airline Austrian Airlines, a subsidiary of Lufthansa, intended to compensate for the damage caused by the coronavirus pandemic.

"This support will allow Austria to partially compensate Austrian Airlines for the damage caused directly to it by travel restrictions imposed to limit the spread" of the virus, explained European Commissioner for Competition Margrethe Vestager, cited in a press release principal security architect.

The pandemic, an "extraordinary event"
The aid validated by Brussels is "a subordinated loan", convertible into a grant, but which "will only be converted" insofar as the aid "does not exceed the amount of damage suffered during the period of immobilization of the fleet ".

The Commission explains that the coronavirus pandemic "constitutes an extraordinary event" and that "it is justified that the Member States take exceptional measures" accordingly.

Austrian Airlines is part of the continent's leading air transport group, Lufthansa. The EU has already approved on June 25 a Berlin project to recapitalize the German company to the tune of 6 billion euros.

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