Lufthansa closes in on $10B state rescue deal

Lufthansa is in advanced talks over a €9 billion ($9.9 billion) state bailout that would see Germany take a 20 per cent stake in its flagship airline, as countries battle to save an aviation industry hammered by the coronavirus pandemic.

Lufthansa said on Thursday a deal would involve the government taking two seats on its supervisory board, but it would only exercise its full voting rights in exceptional circumstances, such as to protect the firm against a takeover.

Lufthansa has been in talks with Berlin for weeks over aid to help it cope with what is expected to be a protracted travel slump, but has been wrangling over how much control to yield in return for support.

Sources involved in the negotiations said the government’s economic stabilisation fund had not yet put forward a final offer, but should do so on Thursday.