The European Commission has reopened its investigation into Germany's €6 billion state aid package to recapitalize Lufthansa during the Covid-19 pandemic.

A court ruling nullified the aid approval due to errors in assessing Lufthansa's financial standing and market power.

The investigation will focus on Lufthansa's eligibility for aid, the need for a mechanism for the state to exit the company, share prices, market dominance, and compliance with imposed commitments.

The aid package included a €306 million equity stake, a €4.7 billion non-convertible passive stake, and a €1 billion convertible passive stake.

Germany, Austria, Switzerland, and Belgium offered Lufthansa €9 billion in aid, with most coming from Germany.

Lufthansa repaid all funds early, resulting in a profit for the German government.

CEO Carsten Spohr's preference for market debt over taxpayer debt highlights the potential impact of the investigation on the airline's financial decisions moving forward.

The outcome of the new investigation is uncertain, but stricter conditions on Lufthansa could be imposed, potentially affecting future state bailouts and competition in the aviation market.