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Lufthansa (LHAGR; Baa3/BBB-/BBB-) EU Probe into state aid heads deeper

TRANSPORTATION

Here is the full pressor. There is not much new there but it sounds like the start of what might end in a fine.


Ryanair (market leader on margins) went around challenging state aid handed to various airlines under EU rules for liberalisation of travel and broader single market EU policy. It saw the programs as "discriminatory subsidy schemes limited to their own former flag carriers, ignoring other airlines that contribute to the economy and the connectivity of the European Union".


It won challenges against German carriers Condor & Lufthansa, Dutch aid to Air-France and Italian aid to local airlines. Thus far it has only involved annulments (cancellations of past programs) with state aid under most programs fully repaid (in the case of Lufthansa, Air-France).

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