Lufthansa Receives First Tranche of Billions in State Aid
Frankfurt (dpa) - The first funds from German state aid have been received by airline Lufthansa.
Just over a week after the annual general meeting approved the rescue package, the aviation group drew down the first tranche of around 1 billion euros (1.12 billion dollars) from its line of credit at the KfW state-owned development bank, a spokesman said in Frankfurt on Saturday.
The time to call on the other 2 billion euros from the state bank has not yet been decided and would be determined by Lufthansa.
The particularly controversial federal government equity participation of 20 per cent is also in the works.
The new shares were issued on Friday and should be booked to the federal government on Monday, the spokesman said.
This part of the state aid package in particular had prompted criticism from old shareholders. In addition to the loan and the equity component, a silent participation is planned, for which rising interest rates will accrue.
Earlier, Lufthansa boss Carsten Spohr had emphasized in an interview with the Neue Zuercher Zeitung that the total state aid of over 9 billion euros would probably be needed, also to invest in new, more environmentally friendly aircraft.
"Because we will grow less, we have halved the number of planes that we want to take off over the next few years. But the modernization will continue," Spohr said.
According to the spokesman, around 80 new jets are to be added over the next three years, while another around 80 orders have been postponed.
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