Lufthansa’s coveted airline slots under threat after bailout

Lufthansa may be forced to give up coveted slots at Frankfurt and Munich airports as the EC pushes to attach conditions to Germany’s €9bn bailout of the airline and rival Ryanair threatens to challenge the deal. Angela Merkel’s administration agreed Monday to support the country’s national carrier, which has been appealing for state aid in four countries as the coronavirus crisis cut its operations to just 1 per cent of its regular capacity. As part of the rescue package, Berlin will take a 20% stake in the airline, with the option of increasing that to a blocking minority of 25%, plus one share, in the event of a hostile takeover bid. However, EU officials are concerned that the deal may undermine competition and are in discussions to force the airline to get rid of some slots to make sure rivals have a fair advantage, people with direct knowledge of the discussions said. Merkel’s party, the CDU, hit back at talks in Brussels over reducing slots, warning that Lufthansa’s bailout, which it referred to as a “temporary strengthening of a European flagship carrier” must not be jeopardised by “overregulation in Brussels”.<br/>