EU approves €290m aid for Lufthansa Belgian unit
The European Commission on Friday approved a €290m aid package for German carrier Lufthansa's Belgian unit Brussels Airlines, to help it withstand the impact of the coronavirus pandemic.
Deutsche Lufthansa AG
€6.67
14:05 19/04/24
Xetra DAX
17,740.04
14:05 19/04/24
The deal is made up of a six-year €287m loan, linked to the short-term liquidity needs of Brussels Airlines, and around €3m in equity subject to ban on dividends and bonuses along with a cap on management pay.
"The aid measure is necessary, appropriate and proportionate to remedy a serious disturbance in the economy of a member state," Competition Commissioner Margrethe Vesthager said in a statement.
“The airline has been suffering substantial losses as a result of the travel restrictions that Belgium and other governments had to impose to limit the spread of the virus.”
Brussels Airlines is a major network airline with its main hub at Brussels International Airport. Together with its parent company SN Airholding, Brussels Airlines belongs to SN Group, which is fully owned by Deutsche Lufthansa.
Since the start of the coronavirus outbreak, Brussels Airlines, and more generally SN Group, have suffered a significant reduction of their services, resulting in high operating losses and a significant liquidity shortage, the commission added.
Brussels Airlines said it lost €1m a day because of revenue losses, aircraft leasing and maintenance costs when its planes were grounded under the lockdown measures implemented to slow down the spread of the virus.