German fund WSF approves local support for Lufthansa subsidiaries

German federal fund WSF has approved local financial aid for Lufthansa subsidiaries Austrian Airlines, Brussels Airlines and Swiss under the group’s E9b support package from the government in Berlin. Austrian CE Alexis von Hoensbruch describes the approval as a “last hurdle” and expresses gratitude for the support package. He states: “Help cannot be taken for granted. We know this. It is all the more important to prove to our country that this money is a good investment for the economy, customers and employees.” In July, the European Commission disclosed its approval of a financial support package for Austrian worth E600m, which had been agreed by Lufthansa and Austrian government in June. The package comprises a E150m injection from the Austrian government, repayable loans of E300m from local banks, and a E150m equity investment by Lufthansa. Under a similar local arrangement, Swiss and its Edelweiss leisure affiliate have been granted a Swfr1.5b ($1.64b) loan facility provided by a consortium of local banks and backed by the Swiss government with an 85% loan guarantee. Swiss CE Thomas Kluhr states: “This support will enable Swiss and Edelweiss to negotiate the present crisis, which has been caused by factors beyond our industry’s control, and to continue to gradually resume our flight operations.” For Brussels Airlines, a stabilisation package was arranged comprising a E290m loan from the Belgian state and E170m capital injection by Lufthansa, the group disclosed in July.<br/>