600-Million rescue package for lufthansa subsidiary aua

600-million rescue package for lufthansa subsidiary aua

Austrian airlines (AUA), a subsidiary of lufthansa, is to survive the corona crisis with support of 600 million euros. Half of this is accounted for by state-guaranteed bank loans, said federal chancellor sebastian kurz (ovp) in vienna.

150 million AUA receives from the republic as fresh equity capital. 150 million euros in loans from parent company lufthansa. In return, austria will receive a ten-year location guarantee for AUA. This is good news for austria as a location in general, he said briefly. Many among the 7000 AUA employees could breathe a sigh of relief. "This agreement will mean that the mass of these jobs can be maintained," says the head of government.

The government attached particular importance to lufthansa’s promise that the site should grow at the same rate as the sites in munich and frankfurt, according to a short. AUA, like lufthansa, had been placed in an extremely threatening situation by the corona crisis. Some time ago, switzerland had already approved state aid worth billions for the lufthansa subsidiary swiss and edelweiss. State aid also sought for brussels airlines.

The rescue package combines the government of ovp and grunen with climate targets. There should be no more "cheapest tickets" thanks to an anti-dumping regulation, said vice chancellor and grunen boss werner kogler (grune). The bottom line is that no more tickets under 40 euros should be offered, according to environment minister leonore gewessler (grune). The same applies to certain short routes, which should be better reached by train.

From the point of view of lufthansa boss carsten spohr, the combination of ecological requirements and economic freedoms could have a model character beyond austria. Too cheap tickets are irresponsible, spohr said this evening. According to alexis von hoensbroech, AUA’s chief executive officer, the agreement does not explicitly provide for the cancellation of certain routes. But it is clear that "we are now taking a particularly close look at the short-haul routes."Spohr stressed the importance of AUA for the LH group. The austrian subsidiary is an elementary component of lufthansa’s multi-hub strategy.

Hoensbroech stressed that beyond the rescue package, AUA could only take off again with the concessions of employees and suppliers. On 15. June after a three-month break from corona, the first scheduled AUA flight from vienna will take off again. On 1. New york is to be the first intercontinental destination to be flown to in july.

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