Following on from parent company Lufthansa receiving a bailout from the German government its subsidiary Austrian has similarly secured aid from its domestic government, according to reports by local media.
Austrian Airlines reached agreement with the country’s government on loans for the airline and to keep Vienna airport as a long-haul hub, according to local newspaper Kurier.
Austria's government agency in charge of administering the COVID-19 rescue fund, COFAG, and a banking consortium led by Erste Group agreed on loans of 300 million euros over a period of six years, the newspaper said, these loans would be 90% guaranteed by the state, and would be secured with Austrian Airlines' aircraft and an equity interest in the firm.
No agreement had been reached yet on additional equity, for which the state demanded a participation in the company, Kurier said.
Austrian Airlines, which employs 7,000 staff, has applied for 767 million euros in state aid.
The Austrian government has repeatedly said that keeping Vienna as a long-haul hub, saving jobs and introducing measures that make the carrier greener to better protect the climate were conditions for granting state aid.