European Commission approves compensation for Deutsche Bahn
The European Commission has approved support measures for Germany in the amount of $ 644.37 million (550 million euros) aimed at compensating Deutsche Bahn for losses incurred by its subsidiary DB Fernverkehr due to the Covid-19 pandemic.
This measure, approved in accordance with EU state aid rules, will be provided in the form of a capital injection. The commission said the compensation would help the rail service operator correct losses incurred between March 16 and June 7, 2020 in relation to domestic travel and between March 16 and June 30 last year in relation to international travel, reports Railway Supply magazine.
DB Fernverkehr witnessed a drop in passenger traffic due to travel restrictions caused by the coronavirus. As a result, the company faced high operating losses and a drop in revenues.
Under a profit and loss transfer agreement between Deutsche Bahn and DB Fernverkehr, Deutsche Bahn covered the losses of its subsidiary at the end of last year.
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