Lufthansa’s supervisory board rejects €9bn support package terms

(Photo: FMG)

At its meeting today (May 27), the Supervisory Board of Deutsche Lufthansa discussed the possible acceptance of the €9bn stabilisation package offered by the Economic Stabilisation Fund (WSF) of the Federal Republic of Germany earlier this week.

After the meeting the airline issued a statement saying the Board has taken note of the conditions currently indicated by the EU Commission and believes they: “would lead to a weakening of the hub function at Lufthansa’s home airports in Frankfurt and Munich”.

It highlighted that the: “resulting economic impact on the company and on the planned repayment of the stabilisation measures, as well as possible alternative scenarios, must be analysed intensively.” As a result, it said: “the Supervisory Board was unable to approve the stabilisation package in connection with the EU conditions. However, the Supervisory Board continues to regard WSF stabilisation measures as the only viable alternative for maintaining solvency.”

The airline added that it will not convene an Extraordinary General Meeting for the implementation of the stabilisation measures for the time being. The initial offering would have resulted in the German government taking a 20% stake in the airline, which it hoped to sell by the end of 2023.

Ultimately, any deal that is struck between the two parties will still require the European Union’s approval.