Germany, EU Commission agree on Lufthansa’s bailout package deal which will see the German carrier give up eight planes
Airplanes of German carrier Lufthansa are parked at the Berlin Schoenefeld airport, amid the spread of the coronavirus disease in Schoenefeld, Germany, May 26, 2020.
Since the pandemic hit Europe, the Lufthansa group – which also includes Brussels and Austrian Airlines and Swiss – has been bleeding $1.1 million per hour, with around 90 percent of its 760-aircraft fleet grounded. Lufthansa said in a statement it had "decided to accept the commitments offered by Germany to the EU Commission" for the rescue package, adding it would surrender up to 24 take-off and landing slots that could be allocated to rival airlines.
The $10 billion German state lifeline, would see Berlin take a 20-percent stake in the group, with an option to claim a further five percent plus one share to block hostile takeovers.On top of a total $6.3 billion in extra capital and $333 million to buy the shares at face value, public investment bank KfW would also lend Lufthansa $3.3 billion euros.
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