July 24, 2020 / 1:35 PM / 20 days ago

Belgian Lufthansa subsidiary says reaches coronavirus bailout deal

FILE PHOTO: The logo of Brussels Airlines is seen at the entrance of the company headquarters, near the International airport of Zaventem, during the coronavirus disease (COVID-19) outbreak in Diegem, Belgium May 12, 2020. REUTERS/Yves Herman

BRUSSELS (Reuters) - The Belgian subsidiary of Lufthansa (LHAG.DE) Brussels Airlines said on Friday it would get a 290 million euro (264 million pounds) loan from the Belgian government and a 170 million euro capital injection from its German owner.

“(The) Stabilization package enables Belgium’s home carrier to overcome the unprecedented crisis caused by the coronavirus pandemic and to create a sustainable future,” Brussels Airlines said in a statement.

“Lufthansa’s financial support allows Brussels Airlines to implement its turnaround plan and herewith to create a long-term and structurally profitable future for the company,” it said.

The airline added the entire package still needed government approvals in Germany and from the EU’s executive arm.

Reporting by Gabriela Baczynska

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