The EU Commission has defended its sharply criticized position in Germany on the German government’s billion dollar rescue package for AUA’s mother Lufthansa.
Your authority creates “no additional obstacles” here, but only ensures “that distortions of competition are eliminated,” said EU Competition Commissioner Margrethe Vestager in Brussels today. Otherwise, the EU countries would have accepted the relevant competition rules.
In view of the economically dramatic situation resulting from the coronavirus crisis, Lufthansa and the German federal government had agreed on a nine-billion-euro aid program that would entail state entry. According to reports, the EU Commission wants to link its approval to the surrender of take-off and landing rights to competitors.
Lufthansa supervisory boards make bankruptcy clear
At Lufthansa, several supervisory boards brought the airline’s bankruptcy into play. Insolvency in self-administration has advantages over government aid, quotes the magazine “Focus” members of the supervisory board.
In the event of bankruptcy, for example, the reimbursement of flight tickets, which is estimated at up to 1.8 billion euros, could be suspended.
In addition, dismissals and the closure of unprofitable subsidiaries would be easier. As a result, far more than the 10,000 jobs targeted so far could be lost. “The rejection of the rescue package is a signal to the federal government to negotiate again with Brussels”, “Focus” quoted a member of the supervisory board.
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