Lufthansa, Germany agree on $9.8-billion rescue package
The German Finance and Economy Ministries on Monday said Lufthansa was an operationally healthy company before the coronavirus outbreak, was profitable and had good prospects for the future but had got into trouble because of the pandemic.
by Reuters
Frankfurt: The German government and Lufthansa have reached a preliminary deal on a ยค9 billion ($9.8 billion) bailout.
The airline has been in talks with Berlin for weeks over aid to help it to cope with what is expected to be a protracted travel slump, but the carrier has been wrangling over how much control to yield in return for support.
The German Finance and Economy Ministries on Monday said Lufthansa was an operationally healthy company before the coronavirus outbreak, was profitable and had good prospects for the future but had got into trouble because of the pandemic.
Rivals such as Franco-Dutch group Air France-KLM and US carriers American Airlines, United Airlines and Delta Air Lines have also sought state aid. Shares in the company were up 5.5% at 8.48 euros by 1507 GMT.
Lufthansa said that conditions of the deal include the waiver of future dividend payments and limits on management pay.