German carrier Lufthansa accepts amended demands by Brussels over state bailout



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German carrier Lufthansa accepts amended demands by Brussels over state bailout

Less than a couple of days after the Europe’s second-largest aviation industry titan, Deutsche Lufthansa AG or simply Lufthansa, had secured a €9 billion bailout package from the German coalition Government of Chancellor Angela Merkel in exchange for a 20 per cent stake in the airliner, Lufthansa’s management board had seized a more-favourable set of demands from the EU Commission, the Munich-based German multinational carrier having 300 fleets operational on more than 200 destinations said in a statement on Saturday, pointing towards a secured path towards rescue unlike other aviation industry giants which had bore the heaviest brunt amid a global-scale lockdown.

In point of fact, latest announcement from Lufthansa came forth a couple of days after the airline’s management board had discarded a set of painful demands from the EU Commission, while under the recently approved accord, the German airline would remain obliged to let one of its rivals use 24 landing and take-off slots for up to four aircrafts at the the Munich and Frankfurt airports, down from a previous demand of 72 landing and take-off slots, a source directly briefed over the subject-matter had unveiled.

Lufthansa seals better EU deal as slots to be allotted following bidding process

Besides, as Lufthansa had reached an accord with the EU Commission to allot slots to its rivals, the slots could be taken over by any European airline which had yet to secure a state aid to offset fiscal damages meaded out of the pandemic outbreak following a bidding process, the second-largest German carrier said on its Saturday’s announcement.

Meanwhile, adding that the latest Lufthansa deal with the EU Commission, would allow the bloc’s grief-sickened airlines sufficient timeframe to go through a sweeping overhaul process, Lufthansa said in the statement, “(Lufthansa’s remedies will) enable a viable entry or expansion of activities by other airlines at these airports to the benefit of consumers and effective competition.

” Besides, citing an out-and-out optimism over the recent deal among the EU Commission, the German Government alongside the airline itself, German Economy Ministry said in a statement shortly after the Lufthansa announcement, “The German government, Lufthansa and the European Commission have reached an important intermediate step in the aid negotiations”.