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Eisenberger & Herzog Helps Austrian Airlines Recieve EUR 150 Million in State Aid

Eisenberger & Herzog Helps Austrian Airlines Recieve EUR 150 Million in State Aid

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Eisenberger & Herzog has helped Austrian Airlines on its receipt of State aid amounting to EUR 150 million from the Republic of Austria.

According to Eisenberger & Herzog, the State aid is part of a financing package with a total volume of EUR 600 million, which includes an equity grant from the parent company Lufthansa of EUR 150 million and a state-guaranteed bank loan of EUR 300 million.

"The EU Commission’s review found that Austria’s proposed State aid complies with EU State aid rules," Eisenberger & Herzog reports, "because it compensates Austrian Airlines for losses due to global travel restrictions during the corona pandemic from early March to mid-June 2020, which gave the airline no choice but to largely shut down its own fleet during this period. For the purpose of compensating for the damage caused thereby, the Republic of Austria (represented by the COVID-19 Financing Agency of the Federal GmbH - COFAG) Austrian Airlines subordinated loan, which is converted into a grant as soon as it has been determined on the basis of the 2020 annual financial statements by an independent audit firm that the aid does not go beyond the losses suffered in the reference period.

Eisenberger & Herzog's team included Partner Andreas Zellhofer and Lawyer Florian Sagmeister.