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6/8, 2:03 PM (Source: TeleTrader)
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Austrian Airlines to get €600M in rescue package

Austrian Airlines will receive a total of €600 million in a rescue package agreed between the Austrian government and the airline's parent company Deutsche Lufthansa AG, local media reported on Monday.

According to the deal which is set to be officially announced later in the day, Austria will give its flagship carrier €450 million that will be divided into a state-guaranteed bank loan of €300 million and a non-repayable grant of €150 million. Meanwhile, an additional €150 million will be given to Austrian Airlines by Lufthansa. Furthermore, the Austrian government and the German airline agreed that Austrian Airlines headquarters must remain in Vienna for at least 10 years.

Earlier, Berlin offered Lufthansa a €9 billion aid package, but the company's board delayed accepting the agreement over worries the agreement would weaken Frankfurt and Munich airports after the European Commission imposed its conditions for the deal. However, worries over Lufthansa's solvency remain strong in Germany.

Breaking the News / VP