EU Commission authorises financial aid for Austrian Airlines

The Commission has examined the rescue aid for Austrian Airlines notified by Austria and has authorised it after checking that it complies with Community rules, notably:

* the aid is in the form of a loan guarantee for EUR200 million granted at market rates.
* the amount of aid is limited to what is needed to manage the company;

The decision deals only with a short-term measure to tackle liquidity problems that Austrian Airlines has encountered as a result of the financial crisis.

Having examined the information provided by the Austrian authorities the Commission has concluded that the rescue aid is warranted and complies with the applicable provisions of the Community framework for rescue and restructuring of firms in difficulty.

The decision adopted does not concern the planned sale of Austrian Airlines to Lufthansa or the long term plans of the airline which have also been notified to the Commission by Austria as possible State aid and are still being examined.




(c) Centre for Asia Pacific Aviation. Date posted: 20-Jan-09
 

Other Austrian Airlines News

• Remaining minority shareholders of Austrian Airlines to receive 0.50 euros per share
• Austrian: Peter Malanik is voted onto AEA Presidents’ Committee
• TAM signs agreement with Austrian Airlines
• Austrian Airlines management and works councils agree time-limited savings package
• Austrian Airlines enhances efficiency and service with IT from Lufthansa Systems
• Austrian Airlines reports Jan - Apr-2009 traffic results
• Austrian expands route network
• Austrian Airlines and Vienna Airport reach successful negotioations to safeguard location
• Austrian Airlines Group passenger volume reduction
• Austrian Airlines releases statement in regards to Lufthansa bid