eu approves german rescue loan
Last Updated : GMT 06:49:16
Arab Today, arab today
Arab Today, arab today
Last Updated : GMT 06:49:16
Arab Today, arab today

To insolvent Air Berlin

EU approves German rescue loan

Arab Today, arab today

Arab Today, arab today EU approves German rescue loan

The European Commission
Brussels - Arab Today

The European Commission on Monday approved Germany's plans to grant insolvent Air Berlin a 150 million euro ($180 million) loan to allow it temporarily to serve passengers while selling off its business.

The 28-nation EU executive effectively refuted critics who say the German government is offering state aid for rival airline Lufthansa to build a monopoly with Air Berlin assets.

"The European Commission has endorsed under EU state aid rules Germany's plans to grant Air Berlin a temporary 150 million euro bridging loan," the commission said in a statement.

"The measure will allow for the orderly wind-down of the insolvent airline Air Berlin without unduly distorting competition in the single market," it added.

It said the German government on August 15 had notified the commission of its intent to grant a bridging loan to Air Berlin after Etihad, the main shareholder, withdrew its financial backing for the insolvent firm.

The aim of the loan, the commission said, is to allow Air Berlin to continue serving passengers in the "coming months", while at the same time concluding negotiations to sell its assets and eventually exit the market.

Under EU rescue and restructuring rules, member states may support companies in difficulty as long as the measures are "limited in time and scope" and promote the common interest.

The commission said it has taken into account the fact that the loan will be paid out in instalments under strict conditions, with Air Berlin demonstrating its liquidity needs weekly.

It said Germany has also pledged to ensure the loan will either be fully repaid or the government in Berlin will submit a plan to wind down the airline.

Welcoming the EU's approval, Air Berlin chief executive Thomas Winkelmann said the government loan will help the airline as it looked for buyers.

"Since discussions began, we have done everything to ensure that as many jobs as possible are kept," Winkelmann said in a statement.

Bidders for the airline's assets are due to put in their offer by September 15, and several companies, including Lufthansa counts among them.

Lufthansa -- which already leases 38 of Air Berlin's 140 planes -- could buy up to 70 aircraft with as many as 3,000 crew for its low-cost subsidiary Eurowings, Bild newspaper reported recently.

Other interested airlines cited in media reports include package holiday firm TUI, British low-cost carrier EasyJet and Thomas Cook subsidiary Condor.

Winkelmann told Bild am Sonntag that the airline was in talks with "more than 10 interested parties, including several airlines".

"There won't be just one but two or three buyers," he added.

Ryanair chief Michael O'Leary claimed last month that Lufthansa has enjoyed an unfair advantage in the scramble for chunks of the business, especially valuable landing slots at major German airports.

Bavarian investor Hans Rudolf Woehrl lent his voice to O'Leary's criticism of the bridging loan.

source:AFP

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

eu approves german rescue loan eu approves german rescue loan

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

eu approves german rescue loan eu approves german rescue loan

 



GMT 10:10 2017 Thursday ,09 February

3 Important Elements You Have to Consider

GMT 04:03 2017 Monday ,24 April

Bella Hadid ‘dying’ to visit Palestine

GMT 19:25 2016 Wednesday ,25 May

The Brooklyn Desk by Oeuf NYC

GMT 07:49 2018 Friday ,05 January

2 Russian servicemen killed

GMT 07:58 2018 Monday ,01 January

Italy orders N. Korea's envoy to leave

GMT 08:45 2017 Wednesday ,20 December

US military imagines war without GPS

GMT 17:26 2017 Sunday ,17 December

Putin thanks Trump for help in foiling attack plot

GMT 22:19 2017 Monday ,16 October

Cairo-hosted Fatwa conf. new contribution

GMT 02:27 2016 Friday ,10 June

Video hints Japan abetting illegal ivory trade

GMT 07:04 2017 Wednesday ,19 April

1,883 Bahrainis found jobs in March

GMT 14:24 2016 Tuesday ,22 November

Citi and JPMorgan top list of ‘globally banks’

GMT 21:43 2017 Friday ,01 September

People question Nazaruddin`s repatriation expenses

GMT 09:41 2017 Wednesday ,19 April

OIC concerned over violence in Mali

GMT 01:30 2017 Friday ,27 October

May22/Jun21

GMT 05:38 2016 Friday ,30 December

Dubai Airports divert 13 flights due to heavy fog

GMT 11:38 2017 Saturday ,14 January

Mexico names new ambassador to US

GMT 12:03 2017 Wednesday ,22 March

Kuwait to mark World Water Day

GMT 15:00 2017 Wednesday ,27 September

HM King receives invitation from Egyptian President

GMT 02:45 2017 Tuesday ,05 December

President Bashir arrives in Chad

GMT 02:45 2017 Wednesday ,16 August

Turkmen President Visits Pakistan
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©

arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday