June 1, 2020, 2:20 a.m. EDT

Lufthansa giving up slots in bailout package

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By Pietro Lombardi

Deutsche Lufthansa AG has agreed to give up airport slots at Frankfurt and Munich airports as required by European authorities as part of a 9 billion euros ($9.99 billion) bailout package in reaction to the coronavirus pandemic.

The German airline said over the weekend that it will be obliged to transfer up to 24 take-off and landing slots for up to four aircraft to one competitor each at the two German airports.

For the first 18 months the slots, which will allocated through a competitive bidding process, will only be available for new rivals. After this period, existing competitors can bid.

The slots are only open to European rivals that haven't received substantial state recapitalization in the wake of the coronavirus pandemic.

"The scope of the conditions required in the EU Commission's view has been reduced in comparison with initial indications," it said.

The company's supervisory board has to approve the bailout package, something it didn't do last week due to the conditions required by the European Commission.

The package, put together with a German economic fund, is aimed at supporting the airline through the coronavirus pandemic.

Once the supervisory board approves the deal, shareholders will have their say in an extraordinary meeting.

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