Austrian Airlines (AUA), part of the Lufthansa group, announced today that it will request 767 million euros in aid to the Austrian state in the form of guaranteed loans and grants, public radio ORF reported.
The aid will be requested from the public fund endowed with 15,000 million euros to support Austrian companies affected by the economic crisis caused by the COVID-19 pandemic, as confirmed by the company.
The Austrian media agree that the Lufthansa subsidiary urgently requires liquidity in the form of state-guaranteed loans and an increase in own capital in order to survive the slowdown in activity and uncertainty in the sector.
According to the Kurier newspaper, Lufthansa president Cartsen Spohr will meet with Austrian Chancellor Sebastian Kurz on Wednesday to discuss state aid.
AUA, which flies to more than 180 destinations and has its main operations center in Vienna, was already experiencing problems before the current crisis and in November announced plans to reduce its workforce by 800 workers, 10% of the company’s total.