the Money will is not free. The German government agreed with the airline in terms of aid, announced 26 may the German media, German Finance Minister, Olaf Scholz. The government will buy a 20% stake for € 0.3 billion and will receive two seats on the Supervisory Board of the group. That is the first time since 1997, the company will become part of the state.
the Rest of the money will give the state banking group KfW in the form of so-called syndicated loans of 3 billion euros and the national stabilization Fund WSF, which will invest 4.7 billion euros and acquire tacit participation in the company.
the Example of Germany, when the government supports a private airline, this crisis is not the only one. In April it became known that U.S. carriers receive from the U.S. Treasury assistance to $ 25 billion. Part of the funding to be disbursed as loans at low interest rates. State money should go to staff salaries and support operating activities.
In this context, state intervention in business environment is inevitable, says expert at the Institute for complex strategic studies Natalia Churkina. “Support measures can be more systemic in nature when they propagate to the entire industry rather than individual company, for example, reducing the tax burden. This will reduce state influence on competition in the market,” she says.
In particular, in the U.S. the degree of state involvement in the aviation industry will be significantly higher than it was since the reign of President Ronald Reagan, says the Director of the Institute for transport Economics and transport policy HSE Mikhail Blinkin. Reagan held radical privatization, the government withdrew from the American economy, he explains.
However, gosudarstvami such brand commercial sectors as transport, the government is not profitable. As soon as the crisis is over, the government again out of the industry, the expert believes. “Now there is an interesting trend. But nobody sees this as a radical turn toward socialism” – said Blinkin.
