German official sees Lufthansa bailout in reach, demands fairness

The Berlin government is likely to reach a deal with Brussels on a $10 billion government bailout of stricken airline Lufthansa (LHAG.DE), senior government official Thomas Jarzombek said on Friday, but stressed the German airline needed fair treatment.

"Offers are on the table and we have a long record of finding agreement eventually," Jarzombek, who coordinates aviation on behalf of the cabinet, told broadcaster RTL/ntv in a morning show.

"I am confident that this will also be the case here." The deal was thrown into doubt on Wednesday after Lufthansa's supervisory board refused to accept the conditions attached by Brussels to the aid. The board did not agree with EU requirements that Lufthansa permanently give up take-off and landing slots at Frankfurt and Munich airports, where it commands a two-thirds market share.

Jarzombek said Germany would clarify the necessary scope of conditions tied to the deal, comparing these with how Lufthansa rivals such as SAS (SAS.ST) or KLM/Air France (AIRF.PA) were treated

Administrators at South African Airways have asked for more time to publish a business rescue plan for the struggling state-owned airline so they can discuss new government restructuring proposals, a letter to creditors showed.

The administrators, who were meant to publish their plan on Friday, have asked for a new deadline of June 8 so they can consult with creditors, employees and the government. If the delay in publication is approved, they will start those talks on June 1, they said in the letter, dated May 28.

SAA has been fighting for its survival since entering business rescue - a local form of bankruptcy protection - in December, when the administrators took charge of the company after almost a decade of financial losses. In late March, SAA suspended all commercial passenger flights as the government imposed one of Africa's strictest coronavirus lockdowns.