Lufthansa rescue takes important hurdle | the economy

government help is only for takeoff and landing rights, Berlin and Brussels have agreed on key points for the rescue of the Lufthansa. In dry cloths, the packag

Lufthansa rescue takes important hurdle | the economy

government help is only for takeoff and landing rights, Berlin and Brussels have agreed on key points for the rescue of the Lufthansa. In dry cloths, the package is not but still.

Berlin/Brussels/Frankfurt (Reuters) - After tough negotiations between Brussels and Berlin, the rescue package for the heavily damaged Lufthansa is a major hurdle.

The Federal government and the EU Commission agreed on conditions for the capital injection, and the Lufthansa Executive Board agreed to in the night to Saturday. Accordingly, the largest German Airline would have to submit to your most important airports, Frankfurt and Munich Start - and landing rights to competitors. The agreement is only an interim step. The Supervisory Board and the shareholders need to advise, and the formal approval from Brussels is yet to come.

Federal Minister Peter Altmaier (CDU), was pleased about "good news on to Pentecost for over 100 000 Lufthansa-and their families". On Twitter, he wrote: "today's breakthrough in the talks with Brussels makes it clear: Lufthansa will remain a large and globally successful Airline!"

Other reactions were behavior. The head of the CDU/CSU members of the European Parliament, Daniel Caspary, criticized the line of EU competition Commissioner Margrethe Vestager, who had requested the conditions for Lufthansa. "As with the failed merger of the Zugsparte of Siemens and Alstom applies in the case of the Lufthansa-specifications: The major competitors are sitting outside of Europe, and can laugh into their sleeve," said Caspary, the German press Agency in Brussels. "Harms Europe's competitiveness in a sustainable way."

The Green members of the European Parliament Rasmus Andresen praised, however, that the compromise of secure fair competition between the airlines. "We would like to but both the Federal government such as the EU Commission binding climate conditions," added Andresen.

days of the long-negotiated Berlin and Brussels. An Overview:

THE starting position

Lockdown, travel warnings, money of the citizens: The Corona-the crisis has hardly hit the industry as hard as the air travel. Like many Airlines worldwide, Lufthansa is enormously under pressure. The business of the company, with the exception of freight are almost come to a Standstill. In the group with about 138 000 employees, tens of thousands of jobs are at stake.

this is Why the Federal government wants to support the airline with a nine-billion-Euro comprehensive aid package. Lufthansa threatens to otherwise, the money going out. The EU Commission must approve such aid, and strictly ensures that if you could damage the competition. Vestager argued that, otherwise, could ultimately increase the prices for airline tickets, and consumers suffer.

THE PADS

takeoff and landing rights - known as Slots - are an important factor in the air travel. To not weaken competition in the market, Lufthansa give in return for the state aid Slots, said Vestager. "If someone wants to compete with them, he is in need of Slots at an airport," said the Dane.

The low-cost airline Ryanair, had already complained a massive distortion of competition. The multi-billion dollar aid from the Federal government would strengthen the monopoly-like access to the Lufthansa, the German air transport market, criticised the Irish airline. Ryanair boss Michael O'leary had announced to want to against the state aid procedure.

the Airline announced in the night to Saturday, she had to make less concessions than originally requested by the Commission. The company is obliged, therefore, to transfer to the airports of Frankfurt and Munich, a competitor to the stationing of up to four aircraft with up to 24 takeoff and landing rights. The EU Commission had initially demanded, according to the "Handelsblatt", the delivery of 20 Jets. Had offered Lufthansa the delivery of 3 aircraft, but it had rejected the EU Commission, according to the report.

The found Option stand for at least a year and a half only to new competitors to the airports of Frankfurt and Munich, said the company. If no new competitors of the Option to make use of, will be extended the Option on existing competitors in the respective airports. The Slots are to be allocated via a bidding process course - only to a European competitor that have not received substantial government recapitalisation due to the Corona pandemic.

THE POTENTIAL PROFITEERS

"Of the conditions imposed by the EU-Commission to make a flight and land right by the Lufthansa are likely to benefit from Ryanair and Easyjet," said Left party Vice-Fabio De Masi. A look at the flight plans shows that to be true: Ryanair who want to come without the help of the state through the crisis, to fly so far Germany's largest airport in Frankfurt, but is not represented in Munich. Conversely, the UK offers a low-cost airline Easyjet flights from Munich, has pulled out of Frankfurt, but are only just back. De Masi criticized: "The EU-Commission promotes Dumping in the sky".

NEXT STEPS

approve The Supervisory Board of Lufthansa now has the rescue package, including the requirements of the EU. The company will then be convened in the port in a timely manner an extraordinary General meeting, the approval of the shareholders of the package to obtain. For the formal approval by the EU Commission on the state aid package must be registered officially in Brussels. The Commission wants to examine "priority", as announced in the night to Saturday. The Commitments made by the Airline praised the Commission as a cheap for competition and consumers.

the Ministry of the economy indicates that the agreement is still in dry towels: "In addition, the discussions with the EU Commission to state aid approval," - said in a statement. But: "With the now achieved between step of the way is paved for a referral to the annual General meeting."

rescue plan

The rescue plan for the Lufthansa provides that the state's economic stabilization Fund, signed in the course of a capital increase shares, to a participation of 20 percent of the share capital of the airline to build up. In addition, silent participations out of a total of up to 5.7 billion euros and a credit in the amount of up to EUR 3 billion are planned.

message Lufthansa

Date Of Update: 01 June 2020, 01:34

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