Commission approves German aid for the recapitalisation of Deutsche Lufthansa AG
The European Commission has approved a German measure to contribute six billion euros for the recapitalisation of Deutsche Lufthansa AG (DLH), the parent company of Lufthansa Group. This is part of a larger support package that also includes a state guarantee on a three billion euro-loan that Germany plans to grant to DLH under the German scheme approved by the Commission on 22 March 2020.
These measures aim to support DLH, an airline that plays a major role in the German economy, in the context of the COVID-19 outbreak. The recapitalisation plan will be financed by the Economic Stabilisation Fund (Wirtschaftsstabilisierungsfond), a special fund established by Germany in order to provide financial support to German companies affected by the coronavirus outbreak.
The recapitalisation aid was approved under Article 107(3)(b) TFEU and under the State aid Temporary Framework adopted by the Commission on 19 March 2020, as amended on 3 April and 8 May 2020. The Commission concluded that the recapitalisation measure will contribute to management of the economic impact of the COVID-19 outbreak in Germany: the measure aims at restoring the balance sheet position and liquidity of DLH in the exceptional situation caused by the pandemic, while maintaining the necessary safeguards to limit competition distortions.
The non-confidential version of the decision has yet to be published in the State aid register on the Commission’s competition website under the case number SA.57153.
Read the Commission’s press release for more information.