DW: Italy reaches deal with Lufthansa over sale of stake in ITA
DW News reports: The deal still needs to be cleared by the the European Commission. What else ...
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By Alex Lennane
It might not be precisely what Lufthansa was looking for, but the carrier appears to have reached a deal with the German government for a €9bn bailout package.
Expected to be signed today, the deal will result in the government taking a 20% stake in the carrier.
It also means it will appoint two supervisory board members, despite Lufthansa CEO Carsten Spohr’s argument against any government control at the company’s AGM earlier this month.
“Up until the corona pandemic, we as the Lufthansa group ...
Comment on this article
Stan Wraight
May 23, 2020 at 3:45 pm“And he warned: “Our politicians are called upon to ensure that aid does not lead to an imbalance in international competition. Especially when competitors in the US or China are now funding themselves healthy with state support. It is all the more important now that international competition not be distorted by differing types and scopes of state aid.”
Truer words never spoken by LH, USA big three attacked Gulf carriers for years, but 50 billion later from USA treasury not so much now. This state aid if not matched around the world will lead to a horrible position for some of the best run airlines who have built a business based on quality and good management, not government money.