The supervisory board of the German airline Lufthansa has finally agreed to comply with the quid pro quos required by the European Commission with regard to State aid. After opposing the bailout plan a few days ago, it announced on Monday 1 June that it had approved the new version.
The company feared that it would be weakened by the “concessions” attached to the rescue package. According to the Temporary Framework for State Aid, adopted by the Commission in the context of the new coronavirus crisis, the EU is indeed entitled to require “concessions” from the companies concerned when the amount of the aid package exceeds €250 million. In this case, it is a matter of €9 billion.
An agreement was finally concluded on Friday 29 May between the Commission and the German Government – and validated by Lufthansa: the airline will have to give up to 24 take-off and landing slots at the two main German airports, Frankfurt and Munich, to competitors.
What then of the €7 billion state aid granted to Air France-KLM? Asked about this in an interview with Bloomberg TV on Monday 1 June, EU Competition Commissioner Margrethe Vestager explained that the company had benefited from “a different kind” of rescue.
In the case of Air France-KLM effectively revolved around a loan that will have to be repaid. The Lufthansa rescue package, on the other hand, provides for the German State to inject €6 billion of equity capital into the company by taking a 20% stake. A loan of €3 billion will also be granted to the carrier.
The question of the allocation of the slots given up by Lufthansa will now arise: they can only be taken over by a European competitor which itself has not received any substantial state aid in response to the pandemic. A golden opportunity for low-cost carriers! (Original version in French by Agathe Cherki)