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Switzerland provides conditional bailout to Lufthansa

Innovative response

The Swiss parliament has backed the government’s request for nearly 1.9 billion Swiss francs ($1.97 billion) in aid for the struggling aviation sector crippled by the coronavirus pandemic, but said carriers must meet environmental targets.

The lower house of the parliament linked approval of the package to assurances that the carriers would adhere to future government climate targets.

Aviation bailout funds are to be used only for Swiss infrastructure. The government forbade dividends or other payments by carriers until the assistance has been repaid.

Switzerland is not seeking ownership stakes in the airlines helped by the aid package, although state-backed loans from banks would be secured by shares in Swiss and Edelweiss.

Specific issues addressed and anticipated impact

Lufthansa are a large airline company that provide an important share of European air transport. This bailout will provide them with funding but also ensure that the organisation follows environmental regulations in the future and ensure that the bailout funds are spent appropriately.

Organisations/institutions involved


Issues being addressed:

  • Governance responses

Response tags:

Date Submitted:

5 May 2020