The Austrian federal government has agreed an aid package worth
€600 million for Austrian Airlines, which has made a series of environmental
commitments in order to secure funding.
Under the agreement, Austria will provide a €150 million
grant to cover damages resulting from the impact of the coronavirus pandemic, while
the airline’s parent company Lufthansa Group will also inject €150 million. A further
€300 million will be made available through state-backed loans from a
consortium of Austrian banks.
In exchange, Austrian Airlines has agreed to shift passenger
traffic on ultra-short-haul routes to railways so long as adequate
infrastructure is available and direct access to Vienna airport is ensured
based on a travel time of three hours or less. It has also promised to halve CO2
emissions within Austria by 2030 and by 30 per cent overall compared to 2005
levels within the same time frame. It will also increase fuel efficiency by 1.5
per cent per year.
Two people from the airline’s majority stakeholder group will
be appointed to monitor compliance with the requirements and one can be given a
seat on the supervisory board.
Lufthansa Group CEO Carsten Spohr commented: “Austrian
Airlines was and is an elementary part of the Lufthansa Group’s multi-hub
strategy. With this package and in combination with the improved framework
conditions of the Austrian aviation system partners, Austrian Airlines can
rebuild the hub in Vienna after the crisis and connect Austria with important
destinations in Europe and around the world.”
The news comes as Austrian Airlines prepares to resume some
operations on 15 June after grounding its entire fleet nearly three months ago.