9-Jun-2020 1:30 AM

Austrian Airlines, govt agree on EUR600m coronavirus state aid package

Austria's Government, Lufthansa Group and Austrian Airlines reached (08-Jun-2020) an agreement on a EUR600 million coronavirus support package for Austrian Airlines. The financial assistance is designed to support efforts to sustainably safeguard Vienna as an aviation hub in the long term, including connections to Central and Eastern Europe and long haul destinations. Support measures include:

  • Austria will contribute EUR150 million in financial assistance to cover the losses incurred by the airline as a result of the COVID-19 crisis. In return, the government has received long term, binding commitments to the Vienna aviation hub linked to strict ecological requirements. The entire financing package is dependent on state aid for Lufthansa in Germany, the approval of all corporate bodies and the consent of the European Commission;
  • EUR300 million will be made available as loans granted via an Austrian banking consortium, to be repaid by 2026. A guarantee for 90% of the loans will be assumed by the Austrian Government via the COVID19-Finanzierungsagentur des Bundes GmbH, after the required evaluation steps are carried out and all necessary approvals have been granted;
  • EUR150 million will be contributed by Lufthansa as an equity capital injection. [more - original PR - English/German]

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