Handelsblatt said the deal must now be approved by the coalition government, giving Lufthansa two days to reach an agreement. German Chancellor Angela Merkel said on Wednesday that she expected an agreement on a Lufthansa bailout soon, but did not get close. He added that he hoped to minimise layoffs through partial unemployment and crisis agreements. Lufthansa`s supervisory board said on Monday it had agreed to an agreement with Germany and the European Union to rescue the troubled German airline. After lengthy discussions, Brussels and Berlin agreed on a 9 billion euro bailout for German airline Lufthansa. The agreement would lead the airline to divest take-off and landing sites at two airports. With the 9 billion euro bailout, the federal government is taking a 20% stake in the airline. The agreement makes the federal government the largest shareholder in the company. The EU said the compromise reflected the commitments of Germany and Lufthansa to ”maintain effective competition.” Indirect state aid was granted to the norwegian low-cost carrier, Norwegian, which completed a painful restructuring process and secured a loan guarantee from the government. Major lender AerCap now holds a 15.9% stake, after converting leasing bonds into shares. BOC Aviation holds a significant 12.67% stake in Norwegian – and BOC is ultimately controlled by the National Bank of China. The agreement between Berlin and Brussels took so long because German Chancellor Angela Merkel wanted to downplay the group`s federal control.
Like other airlines, the COVID-19 crisis will cost Ryanair a fortune, as the latest results show. But while it won`t use state funds like its rivals, it`s still well-positioned to weather the storm. (18.05.2020) The agreement consists of ceding take-off and landing rights to competitors on large platforms in Frankfurt and Munich, as well as abandoning aircraft to competitors. For its part, the union accepted the estimated savings of more than 500 million euros ($560 million) by the end of 2023, of which ”a large part” would come from ”voluntary measures,” it said. ”When the company is restored, the state will sell its share and I hope… with a small profit that allows us to finance the many and many requirements that we must meet now, and not just in this business. The company closed its low-cost airline Germanwings in April. Daniel Flohr, CEO of UFO, said: ”[Lufthansa] has announced job cuts not only without in-cabin layoffs, UFO and Lufthansa, after years of violent clashes, are now showing a responsible ability to reach consensus and act.” In a separate report, Handelsblatt cited government sources as saying that Berlin had approved a three-step model worth a total of 9 billion euros ($9.88 billion), including a 3 billion euro loan from the state-running bank KfW. Reporting by Michael Nienaber, Emma Thomasson and Madeline Chambers in Berlin; Germany`s ministry of finance and economy said Lufthansa was operationally sound and profitable, with good prospects, but was in trouble because of the pandemic. The Czech Republic is seeking to strengthen control of the smartwings airline group, the parent company of Czech Airlines.
Industry Minister Karel Havlicek said the government could even take over the group in its entirety, but officials said no one had expressed such a wish for it to happen because they prefer a state-backed line of credit to see the company through the coronavirus crisis. As part of the bailout, the federal government will also inject 5.7 billion euros in non-voting capital, so-called ”tacit participation.” BERLIN (Reuters) – The federal government has agreed on the final details of a rescue plan for airline Lufthansa LHAG.DE, media reported on Wednesday. ”We have been in touch with Brussels in all the major rescue plans that have avoided