Germany closes in on $9.8b bailout of Lufthansa airline
AIRLINE HAS WARNED NEED FOR ASSISTANCE IS URGENT DUE TO PANDEMIC
Germany is close to making a formal offer to bail out Deutsche Lufthansa AG even as talks to ensure swift approval from the European Union drag on, according to people familiar with the matter.
The committee that manages Germany’s WSF Economic Stabilisation Fund is set to meet to discuss a €9 billion ($9.8 billion, Dh36 billion) aid package, a person familiar with the matter said. The meeting is an indication that Germany is prepared to formalise an offer, though the situation remains delicate.
The German government and Lufthansa have reached an agreement in principle on a bailout package, German news agency DPA reported yesterday, without citing the source of the information. An economy ministry spokeswoman later told a regular news conference that talks are in the “end phase.” A spokeswoman for Lufthansa declined to comment.
Formal letter
Chancellor Angela Merkel’s administration had aimed to issue a formal offer to the airline this past weekend, but talks between Germany, Lufthansa and the European Commission have held up the plan, said the person, who asked not to be identified because the talks are confidential.
While Lufthansa fought for weeks to limit government interference, its management board is expected to approve the deal quickly before asking the firm’s supervisory board to vote on it, according to people familiar with the matter. The airline last week warned its need for assistance was “urgent” after the coronavirus crisis grounded most of its fleet.