Lufthansa's Executive Board Agrees To EU's Bailout Conditions

The executive board of German flag-carrier Lufthansa agreed on Saturday to a $10 billion bailout deal thrashed out by the national government and the European Commission

MOSCOW (UrduPoint News / Sputnik - 30th May, 2020) The executive board of German flag-carrier Lufthansa agreed on Saturday to a $10 billion bailout deal thrashed out by the national government and the European Commission.

"The Lufthansa Executive Board decided to accept the commitments offered by Germany to the EU Commission for the stabilization package negotiated with the Economic Stabilization Fund (WSF) of the Federal Republic of Germany," the press release read.

The airline is expected to remove four aircraft from Frankfurt and Munich airports, forfeiting three take-off and three landing rights per aircraft and day.

These slots will be auctioned off to new competitors. If no taker is found the bidding process will be extended to existing competitors.

Lufthansa's Supervisory Board now needs to approve the bailout scheme, failing which could see the air carrier file for bankruptcy. An Extraordinary General Meeting will also be held in the near future to secure the approval of the airline's shareholders.