Lufthansa Accepts Commitments to EU Commission for State Aid

The supervisory board of Deutsche Lufthansa AG on Monday voted to accept the 9-billion-euro rescue package offered by Germany’s Economic Stabilisation Fund (WSF), thereby accepting the announced commitments to the EU Commission.

The Executive Board of Deutsche Lufthansa AG already formally approved the package on Friday.

“It was a very difficult decision. After intensive discussion, we have come to the conclusion to agree to the Executive Board’s proposal,” Karl-Ludwig Kley, Chairman of the Supervisory Board of Deutsche Lufthansa AG, said.

As foreseen by the commitments to the EU Commission, Lufthansa will be obliged to surrender a total of 8 aircraft in Frankfurt and Munich airports (four in each airport) together with the equivalent 24 take-off and landing slots, to competitors.

The rescue package for the Lufthansa airline still requires the approval of the competition authorities and shareholders.

Deutsche Lufthansa AG will invite its shareholders to an extraordinary General Meeting on June 25, the agenda of which will deal exclusively with the stabilization measures negotiated with the WSF.

According to Deutsche Lufthansa AG, in order to secure the solvency of the company, the approval with a necessary majority at the General Meeting is required.

“We recommend that our shareholders follow this path, even if it requires them to make substantial contributions to stabilizing their company. It must be clearly stated, however, that Lufthansa is facing a very difficult road ahead,” the chairman of the supervisory board of Deutsche Lufthansa AG said.