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Lufthansa Says Supervisory Board Postpones Approval Of EUR 9 Bln Rescue Package

Deutsche Lufthansa AG (DLAKF,DLAKY) said Wednesday that its supervisory board did not approve the German Government's 9 billion euros rescue package, as the board did not accept the European Union's conditions.

The European Union reportedly has asked the airline to waive some landing rights at Frankfurt and Munich airports.

Lufthansa alleged that the European Union conditions would lead to a weakening of the hub function at the airline's home airports in Frankfurt and Munich. The resulting economic impact on the company and on the planned repayment of the stabilization measures, as well as possible alternative scenarios, must be analyzed intensively.

However, the Supervisory Board continues to regard Germany's new Economic Stabilization Fund measures as the only viable alternative for maintaining solvency.

The Group also said it will not convene an Extraordinary General Meeting for the implementation of the stabilization measures for the time being.

Earlier on Monday, the German Government approved a 9 billion euros rescue package for Deutsche Lufthansa, which is the largest German corporate rescue package since the coronavirus crisis struck. The airline also agreed to the rescue deal.

The rescue package still required approval of the European Commission, as well as the Management Board and the Supervisory Board of the company.

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