MIAMI – The Austrian federal government, Lufthansa (LH), and Austrian Airlines (OS) have reached an agreement on a €450m rescue package for the Austrian national carrier.
The €300m in loans and €150m in direct aid from the Austrian government add to the €9bn in German public aid.
The financial aid is aimed at sustainably and protecting Vienna as a hub and the connections to Central and Eastern Europe (EEC) and long-haul destinations the Group has there.
According to the Austrian Chambers of Economy, €2.7bn in internal value creation, 17,500 thousand jobs, and €1bn in taxes and duties are attributable to OS and its Vienna flight hub.
Content of the agreement
The Austrian Republic will contribute €150m in financial assistance to cover OS losses it suffered in the wake of the COVID-19 crisis.
The Austrian federal government received long-term commitments from LH CEO Carsten Spohr (53), who agreed to keep Vienna as a hub for Central and Eastern Europe for at least 10 years and expand it in tandem with the other group bases.
The clause reflects OS status as a key axis of the economy, offering viable intercontinental connections. The entire financing package depends on state aid for LH in Germany, on the approval of all corporate bodies and on the consent of the EU Commission.
Statement from Lufthansa CEO
Mr. Spohr has stated that OS was and is a fundamental part of the strategy pursued by the LH Group.
The CEO added, “Thanks to this rescue package, in combination with the best conditions of the partners of the Austrian aeronautical system, we believe we can rebuild the flight hub in Vienna after the crisis and to connect Austria with important aspects in Europe and in the world.”
The objective is to relaunch OS in the aftermath of the Covid-19 crisis and generate sufficient funds to repay the loans.
Currently, OS has a fleet of 85 aircraft with an average age of 15.6 years. This includes seven A319-100, 29 A320-200, six A321-100/200, six Boeing 767-300, six Boeing 777-200, 14 DHC-8-400 and 17 ERJ-195.