Lufthansa: German fund approves $9.8 billion in aid

The aid package would also require approval by a shareholder meeting. (Reuters)
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Updated 26 May 2020

Lufthansa: German fund approves $9.8 billion in aid

FRANKFURT: German airline Lufthansa said Monday it has received approval for a €9 billion ($9.8 billion) “stabilization package” from a government support fund to keep the company going through the turbulence from the coronavirus outbreak, but cautions the deal has not been approved by the EU’s executive commission.

Lufthansa, which has lost most of its passenger business due to travel restrictions during the outbreak, said the government’s fund has agreed to take nonvoting holdings in return for €5.7 billion, plus a €3 billion credit line and €300 million in share purchases.

That would leave the government fund with a 20-percent stake in the company and two seats on the board of directors. One of those seats would be on the audit committee. 

The airline said however that the government agreed not to vote its shares at shareholder meetings unless there was a takeover of the company.

The company’s trading statement said that the deal has not been approved by the European Commission, which could set conditions intended to preserve fair competition. 

The aid package would also require approval by a shareholder meeting.

German business publication Handelsblatt said that German Chancellor Angela Merkel was resisting a push by the commission to make Lufthansa give up prized landing slots at its Frankfurt and Munich hubs.


Spain’s international tourist arrivals drop 98% in June

Updated 03 August 2020

Spain’s international tourist arrivals drop 98% in June

  • Over the first six months of the year some 10.8 million foreign tourists visited Spain

MADRID: International tourist arrivals to Spain fell 98% year on year in June, official statistics released on Monday showed, as the country continues to reel from the effects of the global coronavirus pandemic.
Over the first six months of the year some 10.8 million foreign tourists visited Spain, around 72 percent less than in the same period of 2019, the National Statistics Institute said.