European Commission probes Germany's CAD 8.8B Lufthansa aid amid court ruling
On Monday, the European Commission launched an investigation into CAD 8.8 billion of public aid granted by the German government for the recapitalization of Lufthansa during the Covid-19 pandemic. The Commission intends to verify whether Berlin supported the airline by EU regulations.
The Commission approved public aid in June 2020. To benefit from it, Lufthansa had to adhere to several commitments, such as a ban on paying dividends and strict limits on executive pay, including a prohibition on paying bonuses.
Additionally, Lufthansa had to relinquish up to 24 daily slots at Frankfurt and Munich airports to enable competitive carriers to establish a base there.
In its ruling on May 10, 2023, the EU Court, part of the Court of Justice of the European Union, overturned the Commission's decision, finding that EU regulations did not grant the aid.
EC investigation into Lufthansa aid
Following the EU Court's ruling, the Commission announced it would conduct a more detailed investigation. This allows Germany and interested third parties the opportunity to submit comments.
Lufthansa owns the following airlines: Swiss International, Brussels Airlines, Austrian Airlines, Air Dolomiti, Eurowings, Germanwings GmbH, Edelweiss Air, and SunExpress Germany. These airlines operate flights to over 300 destinations in about 100 countries and have a fleet of over 700 aircraft.
