The European Commission investigates £4.9bn Lufthansa aid after EU court setback
On Monday, the European Commission launched an investigation into £4.9 billion of public aid granted by the German government for the recapitalisation of Lufthansa during the Covid-19 pandemic. The EC intends to verify whether Berlin provided support to 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 10 May 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.
