Climate Conditions for Austrian Airlines Bailout

Geography: Europe
Sector: Mobility

Read More: Climate Conditions for Austrian Airlines Bailout

Austrian Airlines received a substantial bailout package of EUR 600 million, comprised of EUR 150 million state aid, EUR 300 bank loans to be repaid by 2026 and EUR 150 million equity capital provided by Lufthansa. This bailout package is tied to several carbon performance targets, which the airline agreed to on June 8th, 2020. The carbon conditionalities require the airline to reduce their domestic emissions by 50% by 2030, reduce their total emissions by 30% by 2030 compared to 2005 levels, improve fuel efficiency by 1.5% per year to achieve an average carbon footprint per 100 passenger kilometre of 8.5kg by 2030 compared to a current footprint of 9.55kg, and shift passenger travel from short distance flight to rail where train connections below 3 hours are available.

Transport & Environment (T&E) published a factsheet about the climate conditions of the bailout package and points to gaps and potential improvements.