Even though the world slowly gets back to what used to be the status quo, there are still some industries fighting the pandemic's effects. One of those is aviation, in which major companies had to file for bankruptcy, dismiss staff, or ask governments for loans just to be able to survive.
One of those companies is Lufthansa, which secured this week a loan from the Austrian government. The grant worth 508 million EUR ($450 million) is to consolidate operations as a carrier in Vienna and to protect the 7,000 jobs.
The stimulus package consists of 300 million EUR in loans from several banks, and it is guaranteed by the state, while the rest is made up from grants.
Unlike the German government, which has a stake in the company, the Austrian government agreed upon expansion of the Vienna hub, which would compete with the Munich and Zurich ones.
Moreover, the company must halve its carbon emissions by 2030. The minimum price for a ticket is to be set at 40 EUR and a 30 EUR tax will be introduced on flights up to 350 km.
During today’s trading session, Lufthansa stocks fell by more than 4%.
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Sources: reuters.com, flightglobal.com