A 9 billion stabilization package has been approved for Lufthansa.
Germany’s flagship carrier is receiving some help.
The new Economic Stabilization Fund (WSF) has approved a 9 billion euro ($9.80 billion) stabilization package for Lufthansa, per Reuters, which is meant to help the airline see through the pandemic outbreak and resume flights to 20 destinations, including Rhodes, Crete, Mallorca, Venice, Malaga and Ibiza. Lufthansa said that conditions of the deal include the waiver of future dividend payments and limits on management pay. The plan includes Germany taking a 20% stake in Lufthansa, which it plans to sell by the end of 2023. Germany will buy the new shares at the nominal value of €2.56 apiece for a total of about €300 million.
The German Finance and Economy Ministries said Monday (May 25) that Lufthansa was an operationally healthy company before the coronavirus outbreak, was profitable and had good prospects for the future but had got into trouble because of the pandemic.
According to business daily Handelsblatt, German chancellor Angela Merkel said that Germany would fight for remedies not being too stringent.