European Commission conditions would weaken carrier’s hub function at Frankfurt and Munich
Economic impact and possible alternative scenarios, must be analysed intensively
Lufthansa’s Supervisory Board is currently unable to approve the €9bn stabilization package offered by the German state, blaming conditions set by the European Commission.
A statement from the board, which met today, said: “The Supervisory Board has taken note of the conditions currently indicated by the EU Commission.
“They would lead to a weakening of the hub function at Lufthansa’s home airports in Frankfurt and Munich.
“The resulting economic impact on the company and on the planned repayment of the stabilization measures, as well as possible alternative scenarios, must be analyzed intensively. “
It added: “Against this background, the Supervisory Board was unable to approve the stabilization package in connection with the EU conditions.
“However, the Supervisory Board continues to regard WSF stabilization measures as the only viable alternative for maintaining solvency.”
Deutsche Lufthansa AG will not convene an Extraordinary General Meeting for the implementation of the stabilization measures for the time being.
Germany’s Economic Stabilization Fund (WSF) has approved Deutsche Lufthansa Group’s stabilization package and loans of up to €9bn.
The WSF will make “silent participations” of up to €5.7bn in the assets of Deutsche Lufthansa, of which approximately €4.7bn is classified as equity in accordance with the provisions of the German Commercial Code (HGB) and IFRS.
