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EC Approves €150M Austrian Loan To Compensate Austrian Airlines To Damages

By  |  July 6, 2020

The European Commission has found an Austrian €150 million (US$169.7 million) subordinated loan (convertible into a grant) in favor of Austrian Airlines AG to be in line with EU State aid rules. The measure aims at partly compensating the airline for the damages suffered due to the coronavirus outbreak.

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    Executive Vice-President Margrethe Vestager, in charge of competition policy, said, “The €150 million public support measure will enable Austria to partly compensate Austrian Airlines for the damage it directly suffered due to the travel restrictions implemented to limit the spread of the coronavirus. The aviation sector has been hit particularly hard by the coronavirus outbreak. We continue working with Member States to discuss possibilities and find workable solutions to preserve this important part of the economy in line with EU rules.”

    Austrian Airlines, which is part of the Lufthansa Group, is a major network airline operating in Austria. 

    With a fleet of over 82 planes, Austrian Airlines served 130 destinations all over the world in 2019, carrying about 14.7 million passengers from its main hub, Vienna, and other airports to various international destinations. Since the start of the coronavirus outbreak, Austrian Airlines has suffered a significant reduction of its services, resulting in high operating losses.

    Full Content: European Commission

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