The Commission has opened an in-depth investigation to assess whether a German recapitalisation measure of €6 billion in favour of Deutsche Lufthansa AG (“Lufthansa”) is in line with EU State aid rules. The measure was initially approved on 25 June 2020 on the basis of the State aid COVID Temporary Framework but the decision was annulled by the General Court in Case T-34/21 on 10 May 2023.
The aid, aimed at restoring the balance sheet position and liquidity of Lufthansa in the exceptional situation caused by the COVID pandemic, consisted of an equity component of €306 million and two hybrid instrument components, namely, Silent Participation I of €4.7 billion with features of a non-convertible equity instrument, and Silent Participation II €1 billion with features of a convertible debt instrument.
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