EU Commission re-examines rescue package for Lufthansa

The EU Commission is once again looking into the rescue package for Lufthansa, which it approved in summer 2020. After the General Court of the European Union annulled the approval at the time in May 2023, it must now re-examine the aid.

At the time, Lufthansa was in financial difficulties due to the consequences of the coronavirus pandemic. The EU Commission approved German aid totaling 9 billion euros. It considered this to be compatible with EU state aid rules and the "Temporary COVID-19 Framework". In return, Lufthansa had to comply with certain requirements, such as not paying out dividends and strictly limiting the remuneration of its management. In addition, Lufthansa had to sell up to 24 slots per day for Frankfurt am Main and Munich airports to give competing airlines the opportunity to set up a base there.

Market power at other airports?

The EU court found that the recapitalization granted to Lufthansa did not meet several of the conditions set out in the "Temporary COVID-19 Framework". The EU Commission now wants to examine whether Lufthansa was eligible for aid at all and also whether a mechanism is necessary for the German state to gradually withdraw from the capital participation. According to the statement, the Commission also wishes to examine whether Lufthansa has significant market power at other airports in addition to Frankfurt am Main and Munich, particularly in Düsseldorf and Vienna.

The Commission adopted the "Temporary Framework" in March 2020 to allow EU Member States to make full use of the scope provided for in state aid rules to support the economy during the coronavirus pandemic. This framework has been extended several times, most recently in November 2021, allowing Member States to support companies struggling with liquidity shortages, for example. They were also able to compensate companies for losses incurred directly as a result of the coronavirus crisis.

(anw)