Lufthansa board stalls bailout decision over landing slot conditions
Lufthansa’s supervisory board has this afternoon postponed approval of the German flag carrier’s €9bn bailout package due to conditions imposed by the European Union.
As part of the deal, the body’s executive the European Commission had asked Lufthansa to waive the rights to six out of 300 landing slots at Frankfurt and Munich airports.
At the moment, the airline holds two-thirds of the market share at these so-called “home” airports.
In light of the condition, the board, which was due to meet commission officials to sign off on the rescue plan today, said it would have to analyse “intensively” the impact of the demand on its financial situation.
In a statement, it warned that the request would “lead to a weakening” of the airline’s hubs at the airports.
However, Lufthansa confirmed that the board still viewed the bailout plan as “the only viable alternative for maintaining solvency”.
German finance minister Peter Altmaier also said this afternoon that he expected the commission to approve the plan as it was in its own interests.
He said: “We’re in negotiations in Brussels with the European Commission about the details of an approval.
“And I want to add, with all emphasis and with all respect: It’s not only in Germany’s interests, but also in the European Union’s interests to avoid a sell-off of strategic interests in the industrial sector as a result of this pandemic.”
The Lufthansa deal has attracted the vitriol of Ryanair chief Michael O’Leary, who has slammed it as “illegal” and said he will appeal to the commission over it.
In a statement last night, O’Leary said that the deal with massively distort competition in the European aviation market, as it would allow Lufthansa to pursue a below-cost selling strategy.
If given approval, the German state will take a 20 per cent stake in Lufthansa, which it said it would sell as soon as the firm’s finances have stabilised.