Photo: Fabrizio Bensch / Reuters
The German government has resolved differences with the European Commission (EC) about a multibillion-dollar rescue plan largest European air carrier Deutsche Lufthansa. About it writes Bloomberg.
The German authorities early in the week endorsed a plan to support the failing airlines, which involves buying a 20 percent stake in the carrier with the right to increase the package and the allocation of nine billion euros. However, this plan faced resistance from the European Commission, which considered that it undermines competitiveness in the European market and Lufthansa provide an unfair advantage over other companies. The EC demanded from Lufthansa to abandon several key slots at the airports of Munich and Frankfurt.
We now know that after intense negotiations, Germany and the EC finally agreed the terms of salvation Lufthansa. To nine billion euros, the company agreed to reduce the presence in the airports of Munich and Frankfurt four aircraft each. “The agreement, which was approved by the Board of Lufthansa, will enable other carriers to challenge the dominance of the largest European player in its own domestic market,” the Agency says.
According to estimates by Lufthansa, the airline is losing about a million euros per hour due to the suspension of flights due to pandemic coronavirus. As a result of its reserves of four billion Euro will end by the fall of 2020.
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