Lufthansa supervisory board unable to approve bailout package

The supervisory board nevertheless continues to regard the bailout plan "as the only viable alternative for maintaining solvency", Lufthansa said.

  
Tail wings of planes of German air carrier Lufthansa are seen from a cafe bar at the airport in Frankfurt, Germany, February 12, 2019.

Tail wings of planes of German air carrier Lufthansa are seen from a cafe bar at the airport in Frankfurt, Germany, February 12, 2019.

REUTERS/Kai Pfaffenbach

FRANKFURT- Lufthansa's supervisory board postponed approval of a 9 billion euro ($9.90 billion) bailout in light of conditions imposed by the European Union, the German airline group said on Wednesday.

Lufthansa's supervisory board had been expected to meet Wednesday to sign off on the rescue deal, but the European Commission has asked Lufthansa to waive landing rights for six out of 300 slots at Frankfurt and Munich airports, where Lufthansa has a two-thirds market share. 

Lufthansa said the demand would "lead to a weakening" of the hub function at its home airports.

"The resulting economic impact on the company and on the planned repayment of the stabilisation measures, as well as possible alternative scenarios, must be analysed intensively," Lufthansa said.

The supervisory board nevertheless continues to regard the bailout plan "as the only viable alternative for maintaining solvency", Lufthansa said.

($1 = 0.9088 euros)

(Reporting by Ilona Wissenbach; writing by Tom Sims; editing by Thomas Seythal and Michael Shields) ((Tom.Sims@thomsonreuters.com; +49 69 7565 1242;))

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