A German fund has approved aid that will allow Swiss and Edelweiss to counter the negative consequences due to the coronavirus crisis.
The Confederation has decided to guarantee an amount of 1.275 billion francs for aid to Swiss and Edelweiss.
KEYSTONE
The German stabilization fund has given the green light to the CHF 1.5 billion loan guaranteed by the Confederation to support Swiss and its subsidiary Edelweiss. The way is thus open to the payment of this aid, said Swiss Monday evening.
This aid will enable Swiss and Edelweiss to counter the negative consequences due to the coronavirus crisis and will promote the gradual resumption, underway since June 15, of the air links of the two companies. Swiss ensures that secured loans will be repaid as quickly as possible.
The Confederation has decided to guarantee an amount of 1.275 billion francs for aid to Swiss and Edelweiss, which allows the two companies to raise 1.5 billion in funds.
The Confederation’s aid depended on aid of 9 billion euros for the rescue of the parent company Lufthansa, whose approval was long overdue. In return for its aid, the German state takes a 20% stake in Lufthansa. At the end of June, an extraordinary general assembly of the company had approved this arrival.
Red numbers
Without the support of the German state, Lufthansa would soon have run out of money. Travel restrictions were costing him 550 million euros per month. At the end of June, the company had only 2.83 billion euros in cash, against 4.25 billion three months earlier.
The pandemic has dragged Swiss into the red numbers. This generated an operating loss of 266.4 million francs in the first half, against a profit of 245.3 million a year earlier. Revenue fell 55% to 1.17 billion. At the height of the crisis, 95% of the company’s fleet was grounded.
The federal finance administration said on Monday that it had learned of the German state’s decision. The credits guaranteed by the Confederation make an important contribution to maintaining Switzerland’s international air traffic.
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