EU approves €150M state aid to Austrian Airlines

Monday, 06. July 2020 18:23

The European Commission announced on Monday that it approved €150 million in state aid to Austrian Airlines as part of coronavirus economic hardship relief. The funds will initially be issued as a subordinated loan but can be converted into a grant.

"The €150 million public support measure will enable Austria to partly compensate Austrian Airlines for the damage it directly suffered due to the travel restrictions implemented to limit the spread of the coronavirus. The aviation sector has been hit particularly hard by the coronavirus outbreak," European Commission Vice President Margrethe Vestager said.

Austrian Airlines is set to receive a total of €600 million in aid as it will take out a €300 million loan by a consortium of commercial banks while its parent company Deutsche Lufthansa AG will provide for an additional €150 million, on top of the government grant.

Related Links: Deutsche Lufthansa AG
Breaking the News / VP