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German Covid-19 aid to Lufthansa under investigation by EU

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The logo of the airline Lufthansa is seen on a Lufthansa building in Hamburg. The European Commission is launching an investigation into whether German government state aid to Lufthansa during the Covid-19 pandemic breached EU rules. Bodo Marks/dpa

The European Commission launched an investigation on Monday to find out whether German government state aid to Lufthansa during the Covid-19 pandemic breaches EU rules.

The investigation follows a ruling by the EU General Court in May 2023 to annul state aid to the German airline.

The European Union’s highest competition authority is currently assessing whether Lufthansa was eligible for German state subsidies and whether there is competition at airports in Germany and Austria.

The German government granted Lufthansa billions of euros in state aid in June 2020, relaxing usually strict subsidy rules to support governments hit by the Covid-19 pandemic.

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