Lufthansa accepts German government's rescue package

BERLIN: German flag carrier Lufthansa on Saturday said it had accepted a rescue plan offered by the country's government and negotiated by the European Commission.

The package will see the German government pour 9 billion euros ($9.8bn) into the company, which has suffered economically due to restrictions imposed to contain the COVID-19 pandemic, reports Efe newws.

The government will take a 20 percent stake in Lufthansa. The European Commission accepted the deal but said Lufthansa must in exchange offer 24 of its take off and landing slots at Frankfurt and Munich airports to other companies.

"The scope of the conditions required in the EU Commission's view has been reduced in comparison with initial indications," Lufthansa said in a statement.

"Lufthansa will therefore be obliged to transfer to one competitor each at the Frankfurt and Munich airports up to 24 take-off and landing rights (slots), i.e. three take-off and three landing rights per aircraft and day, for the stationing of up to four aircraft. "For one and a half years, this option is only available to new competitors at the Frankfurt and Munich airports. If no new competitor makes use of this option, it will be extended to existing competitors at the respective airports," it added. The rescue plan agreed between Lufthansa and the German government following a tough negotiation on Tuesday had been left pending the green light from Brussels. 

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