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| - German airline Lufthansa was poised to clear a key shareholder vote on its nine billion euro ($10 billion) state rescue Thursday, boosted by the EU's green light and the last-minute backing of a billionaire investor who had the power to veto the plan. The European Commission said it had approved the German government's six billion euro cash injection to keep Lufthansa afloat after the coronavirus pandemic pummelled the airline industry, but imposed strict conditions. The massive rescue package also includes three billion euros in public loan guarantees and would see Berlin taking a 20 percent stake in the airline giant. Shareholders began a virtual meeting at 1000 GMT to vote on the bailout, with CEO Carsten Spohr warning that Lufthansa faced bankruptcy if they reject it. "We are asking for nothing less than your consent to rescue Lufthansa," Spohr told participants. "This is a historic moment for our company." The group's biggest shareholder, German rail industry tycoon Heinz Hermann Thiele, had voiced scepticism about the deal in recent days, raising fears he could use his 15.5 percent stake to torpedo the plan. But on the eve of the vote, Thiele told the Frankfurter Allgemeine Zeitung he would back the plan that will dilute his shareholding in order to avoid insolvency and mass job losses. Dozens of Lufthansa employees rallied at Frankfurt airport as the meeting went on, many wearing the carrier's high-visibility yellow vests as well as face masks against the virus. "Lift us up where we belong, vote yes!" read one sign carried by a demonstrator, while another said "We are Lufthansa, we are family". Even with government aid, Spohr warned Lufthansa may have to slash thousands of jobs as travel demand is expected to stay below pre-pandemic levels for years. But in good news for the beleaguered group, it struck a deal with German flight attendants' union UFO late Wednesday to cut 500 million euros in costs by 2023 while avoiding cabin crew layoffs. The savings will be achieved through measures including pay freezes, reduced flight hours, early retirement and unpaid leave, both sides said. The deal still needs to be approved by union members but UFO spokesman Nicoley Baublies said it "brings urgently needed job security" for Lufthansa's 22,000 flight attendants. Spohr said talks with the VC pilots' union were headed in a similar direction but that negotiations with the powerful Verdi union representing ground staff were "disappointing". As part of its okay, the European Commission said Lufthansa would have to make room for rivals at the Frankfurt and Munich airports to ensure fair competition. It also put limits on any Lufthansa acquisitions of competitors and banned dividends until the state aid is repaid. Nevertheless, low-cost rival Ryanair immediately announced it would challenge Lufthansa's rescue in an EU court. Air travel has picked up in recent days as countries emerge from lockdown but Lufthansa's climb out of the coronavirus storm promises to be long and arduous. By September, the group expects its timetable to remain 60 percent below pre-pandemic levels. Further into the future, around 100 of Lufthansa's present fleet of 763 aircraft will likely be surplus to requirements. Spohr said the group would "work very hard" to "repay every cent" of the bailout but cautioned that a smaller Lufthansa would emerge from the crisis. He also acknowledged that many customers were "disappointed and upset" over the delays in getting their cancelled flights refunded after the virus prompted countries to slam their borders shut earlier this year. "I assure you: every customer who wants a refund will get their money back," Spohr said, vowing to clear the backlog worth hundreds of millions of euros within six weeks. Lufthansa has also sought support from other governments to shore up subsidiaries. Vienna has granted Austrian Airlines aid totalling 450 million euros, while Swiss and Edelweiss received loans totalling 1.2 billion euros from Bern. Talks continue with the Belgian government over Brussels Airlines, which plans to shed 1,000 jobs. bur-mfp/hmn/rl
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