Lufthansa CEO meets Austrian Chancellor to discuss state deal

According to an Austrian representative, the Chancellor of Austria Sebastian Kurz and the Chief Executive Officer of Lufthansa Carsten Spohr will meet in Vienna on Wednesday to talk about the necessary state aid rescue package for German flagship carrier, Lufthansa (LHAG.DE).

The discussion involves approval of Lufthansa’s state aid from Germany worth 9 billion Euros ($9.76 billion) after the pandemic forced the airline to ground almost all its fleet. The administration of Austria, Switzerland, and Belgium will be participating in the talks. Lufthansa has local carriers in these countries.

“The Chancellor will listen to what Lufthansa will present,” the representative said.

In return for a financial aid, the Austrian administration will demand job guarantees and pledge that Vienna will continue to be a transfer hub for Lufthansa’s airlines.