$10 billion bailout for Germany's Lufthansa passes hurdle

BERLIN (AP) — German flagship airline Lufthansa agreed Saturday to a compromise worked out between government and European Union, overcoming a major hurdle toward final approval of a 9 billion-euro ($10 billion) bailout from Berlin.

Lufthansa said in a statement it h agreed to compromise worked out between Germany and EU in which airline will have to give up several prized landing slots at Munich and Frankfurt airports. DPA news ncy reported German government h also agreed to compromise.

government anunced aid pack on Monday to help Lufthansa, which, like most airlines, has been struggling during coronavirus pandemic.

EU imposed conditions, however, saying that bailouts must include measures that would maintain a level playing field for or companies.

Specifics on EU’s demands weren’t anunced, but Lufthansa said scope of commitments it agreed to h been reduced compared to initial plans, DPA reported.

Under agreement, airline must remove up to four aircraft from two airports, equivalent to three daily take-off and three landing rights per aircraft, to allow competitors to take slots, airline said.

slots will be re-allocated through a bid process. Discount airlines Ryanair and EasyJet are both thought to be interested.

Lufthansa’s supervisory board w needs to approve full rescue pack, including conditions, and German government needs to finalize its plans with European Commission.