The German state Economic Stabilization Fund (WSF) has that rescue package for the AUA mother Lufthansa of up to nine billion euros agreed. This was announced by the airline on Monday by means of a stock exchange publication.
That should also allow negotiations on Aid package for the Lufthansa subsidiary AUA inspire, it said on Monday from informed circles of negotiators. The German decision is an “important signal”, which is also on Ballhausplatz in Vienna be seen.
The AUA personnel package is currently being voted on. Negotiations with the Austrian government State aid for the airline is in the home stretch, the signal is off Germany could speed up the talks. A result for the AUA could be “within days”.
Contribution without voting rights
The Lufthansa bailout provides that the German state will hold 20 percent of the stake for around EUR 300 million Lufthansa should take over. However, the lion’s share of the aid consists of a silent contribution of EUR 4.7 billion. In addition, there is another silent participation of over one billion euros that can be converted into shares. The German state could thus participate in the Lufthansa increase to 25 percent plus one share if another investor tries to take over the airline.
The German finance minister Olaf Scholz sees the state aid for the AUA mother Lufthansa only as temporary and wants to get out of the airline again at a profit. “When the company is afloat again, the state will sell its shares,” said the SPD politician on Monday. Hopefully this will also provide “a small profit”.
The Lufthansa was basically healthy and now found herself in a difficult situation, blamelessly only because of the corona virus pandemic, said Scholz. Therefore, it is about bridging the crisis. State aid is a “very, very good solution” that takes into account the interests of the state and the taxpayer as well as the company. The federal government wants to get out at a reasonable time, which ultimately depends on the economic situation. If the state spends so much money in the hands of a single company, it has “the duty to do everything so that the investment does not ultimately come at the expense of the state treasury,” said Scholz.
Four percent interest
The Lufthansa have to pay four percent interest on the silent participation, later the interest increases to up to 9.5 percent. The German State Bank KfW contributes a loan of up to three billion euros.
The nine billion euro rescue package for the AUA mother Lufthansa is according to German government associated with sustainability goals. Among other things, it is about the renewal of the fleet, gave economic and Ministry of Finance announced in a joint announcement on Monday.
“There are extensive remuneration restrictions for the Executive Board, the Executive Board members of the Group companies and the management.” The ministries also confirmed that they would get two supervisory board posts in the course of the state entry. These are to be staffed by independent experts.
EU has to agree
Brussels still has to agree, but looming conflict between the German government and EU commission at. The German Chancellor Angela Merkel (CDU) announced in CDU Presidium a “hard fight” because Brussels only want to approve the multi-billion dollar rescue under high conditions. CDU circles had said that the commission demanded that the airline take off and landing rights at the main locations Frankfurt and Munich delivers.
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