NewsEC launches in-depth probe into $6,5B Lufthansa pandemic aid

EC launches in‑depth probe into $6,5B Lufthansa pandemic aid

The EC has launched an investigation into the 6 billion euros of aid provided by the German government for the recapitalization of Lufthansa.
The EC has launched an investigation into the 6 billion euros of aid provided by the German government for the recapitalization of Lufthansa.
Images source: © PAP | Sven Hoppe
Katarzyna Kalus

8:58 AM EDT, July 8, 2024

On Monday, the European Commission launched an investigation into $6,5 billion of public aid granted by the German government for the recapitalization of Lufthansa during the COVID-19 pandemic. The EC intends to verify whether Berlin supported the airline by EU regulations.

The public aid was approved in June 2020 by the EC. 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 EU Court of Justice, overturned the EC'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 around 100 countries, with a fleet of over 700 aircraft.

Related content