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Lufthansa Executive Board Accepts Germany's EUR 9 Bln Rescue Package

Deutsche Lufthansa AG's (DLAKF,DLAKY) executive board has accepted the German Government's 9 billion euros rescue package, due to the European Union reduced its conditions to approve the rescue package. The agreement still requires approval of Lufthansa's supervisory board.

The latest agreement comes after Lufthansa's supervisory board on Wednesday rejected the rescue package, as the board did not accept the European Union's initial conditions.

"At its meeting today, the Lufthansa Executive Board decided to accept the commitments offered by Germany to the EU Commission for the stabilization package negotiated with the Economic Stabilization Fund (WSF) of the Federal Republic of Germany," Lufthansa said in a statement on Saturday.

As per the latest agreement, Lufthansa will be obliged to transfer to one competitor each at the Frankfurt and Munich airports up to 24 take-off and landing rights or slots, i.e. three take-off and three landing rights per aircraft and day, for up to four aircraft.

"For one and a half years, this option is only available to new competitors at the Frankfurt and Munich airports. If no new competitor makes use of this option, it will be extended to existing competitors at the respective airports," Lufthansa said.

The slots will be allocated in a bidding process. The slots can only be taken over by a European competitor that has not itself received any substantial state recapitalization as a result of the corona pandemic, the airline said.

Previously, the European Union had asked the airline to waive more landing rights at Frankfurt and Munich airports to approve the package.

Lufthansa said that its supervisory board needs to approve the rescue package, including the commitments to the EU Commission. Subsequent to the Supervisory Board's decision, the company intends to convene an Extraordinary General Meeting in the near future to obtain shareholder approval for the rescue package.

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