Austrian Airlines, government agree financing package - Kurier

Austria's government and Austrian Airlines on Tuesday reached agreement on loans for the airline and to keep Vienna airport as a long-haul hub, a major step forward in the rescue negotiations, daily Kurier said. Austria's government agency in charge of administering the COVID-19 rescue fund, COFAG, and a banking consortium led by Erste Group agreed on loans of E300m over a period of six years, the newspaper said. These loans, 90% guaranteed by the state, would be secured with Austrian Airlines' aircraft and an equity interest in the Austrian carrier. No agreement had been reached yet on additional equity, for which the state demanded a participation in the company, Kurier said. A COFAG spokesman said negotiations were ongoing. <br/>