During a meeting today, the Swiss Federal Council decided on a comprehensive support package for Swiss aviation companies. According to the decision, the Federal Council will propose to the Swiss parliament to guarantee loans to Swiss airlines. Pending parliament approval, the two Swiss airlines of the Lufthansa Group, SWISS and Edelweiss, will receive guarantees from the Swiss Bund for 85% of the loans totaling 1.5 billion Swiss francs (approx. 1.4 billion euros).
A consortium of Swiss banks will grant the loans at market conditions for a term of up to five years. The Swiss Bund guarantees 85% of the loans and they are secured by SWISS and Edelweiss shares held by Deutsche Lufthansa AG. The funds may only be used at SWISS and Edelweiss. No intra-group dividend payments must be made for the period during which the credit facility is drawn down.
The Executive Board and the Steering Committee of the Supervisory Board of Deutsche Lufthansa AG approved the financing transaction at their meetings today. The guarantees are subject to the approval of the Swiss parliament, which will decide on the matter at its meeting on 4 and 5 May.
Apart from the credit agreement in Switzerland, the Executive Board of Deutsche Lufthansa AG is continuing to negotiate intensively with the governments in Germany, Austria and Belgium in order to secure the Group's solvency for the long term.