State Aid case SA.57153 | COVID-19 – Aid to Lufthansa

Author Details
Author (Corporate)
Publication Date 2020
Content Type

Summary:

Assessment conducted by the European Commission on proposed measures proposed by Germany aimed at supporting and recapitalising air carrier Lufthansa, in the framework of the Temporary Framework for State Aid put in place in light of the COVID-19 (coronavirus) pandemic.

Further information:

German authorities presented a proposal for a contribution amounting to €6 billion to the recapitalisation of Deutsche Lufthansa AG (DLH). This measure was set as part of a larger support package that also includes a state guarantee on a €3 billion loan that Germany planned to grant the company as individual aid, under a national scheme previously approved by the European Commission. An agreement between the German government and the air carrier on the rescue package was reached on 25 May 2020.

The plans presented by German authorities concerning their contribution to the recapitalisation of Lufthansa were approved by the European Commission on 25 June 2020 in the framework of the Temporary Framework for State Aid.

Related Link(s)
Commentary and Analysis
Deutsche Welle, 22/05/2020: When the state gets on board https://p.dw.com/p/3ccYD
Euro|topics, June 2020: Bailout for Lufthansa triggers debate https://www.eurotopics.net/en/243098/

News
Deutsche Welle, 20/05/2020: Merkel: Lufthansa rescue decision 'soon' https://p.dw.com/p/3cYaj
Deutsche Welle, 21/05/2020: Lufthansa in 'advanced talks' over coronavirus bailout https://p.dw.com/p/3cZow
Deutsche Welle, 25/05/2020: Lufthansa and German government agree bailout https://p.dw.com/p/3cinY
Euronews, 25/05/2020: EU state aid: Brussels should review rules 'to help European firms compete with US and China' https://www.euronews.com/2020/05/25/eu-state-aid-brussels-should-review-rules-to-help-european-firms-compete-with-us-and-china
Politico, 25/05/2020: Berlin takes the controls at Lufthansa in €9B bailout https://www.politico.eu/article/berlin-takes-the-controls-at-lufthansa-in-e9b-bailout/
Deutsche Welle, 26/05/2020: Ryanair condemns Lufthansa aid package https://p.dw.com/p/3cnoZ
Reuters, 27/05/2020: Lufthansa board rejects EU conditions on $10 billion bailout https://uk.reuters.com/article/idUKKBN2331YQ
Politico, 27/05/2020: Merkel vows a ‘tough fight’ with Brussels over Lufthansa rescue https://www.politico.eu/article/merkel-tough-fight-with-brussels-lufthansa-rescue-european-commission/
EurActiv, 28/05/2020: Lufthansa board baulks at EU bailout terms https://www.euractiv.com/section/aviation/news/lufthansa-board-baulks-at-eu-bailout-terms/
EurActiv, 29/05/2020: Vestager defends EU approach to Lufthansa mega bailout, as carrier agrees terms https://www.euractiv.com/section/competition/news/vestager-defends-eu-approach-to-lufthansa-mega-bailout/
Politico, 30/05/2020: Brussels and Berlin reach deal on Lufthansa bailout https://www.politico.eu/article/brussels-and-berlin-reach-deal-on-lufthansa-bailout/
Deutsche Welle, 01/06/2020: Lufthansa accepts terms of EU-Germany rescue deal https://p.dw.com/p/3d6tK
Bloomberg, 25/06/2020: Lufthansa’s $6.7 Billion German Recapitalization Gets EU Nod https://www.bloomberg.com/news/articles/2020-06-25/lufthansa-s-6-billion-euro-german-recapitalization-gets-eu-nod
Bloomberg, 26/06/2020: Lufthansa Faces Arduous Climb Out of Crisis After Bailout Sealed https://www.bloomberg.com/news/articles/2020-06-26/lufthansa-faces-arduous-climb-out-of-crisis-after-bailout-sealed
The Local (Germany), 25/06/2020: EU approves huge bailout of German giant Lufthansa https://www.thelocal.de/20200625/eu-approves-huge-bailout-of-german-airline-lufthansa
Reuters, 25/06/2020: Ryanair senior executive says carrier to challenge Lufthansa's bailout https://www.reuters.com/article/idUSKBN23W18Y
EurActiv, 25/06/2020: Lufthansa’s €9bn mega-bailout cleared for takeoff https://www.euractiv.com/section/aviation/news/lufthansas-mega-bailout-cleared-for-takeoff/
Reuters, 25/06/2020: We won't meddle in Lufthansa operating business, says German minister https://uk.reuters.com/article/idUKKBN23W30I
Deutsche Welle, 25/06/2020: Lufthansa bailout package overwhelmingly backed by shareholders https://p.dw.com/p/3eJQl

Official
European Commission: DG Competition: State Aid Register: Case SA.57153 https://ec.europa.eu/competition/elojade/isef/case_details.cfm?proc_code=3_SA_57153
European Commission: Press Release, 25/06/2020: State aid: Commission approves €6 billion German measure to recapitalise Lufthansa https://ec.europa.eu/commission/presscorner/detail/en/ip_20_1179

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