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Bloomberg
The German government and Deutsche Lufthansa AG have agreed on a bailout package, German news agency DPA reported without citing the source of the information.
After delays in recent days, the committee that manages Germany’s WSF Economic Stabilisation Fund was set to meet on Monday, according to a person familiar with the matter. The meeting is an indication that Germany is prepared to formalise its
9 billion-euro ($9.8 billion) offer, though the situation remains delicate as talks to ensure swift approval from the European Union drag on.
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 are holding up the plan, one of the people said.
A timetable for the German government to sell an eventual stake in Lufthansa is one of the details that still needs to be ironed out, said one of the people, who asked not to be identified because the talks are confidential. The discussions are complicated because competitors have vowed to challenge the aid package for Europe’s largest airline.
The outlines of the rescue deal came together last week as Germany seeks to rescue its flag carrier from the fallout of the coronavirus pandemic. Under the plan, Germany would become the largest shareholder in the airline, which plans to resize for what Lufthansa warns could be years of depressed demand.
The company’s shares rose as much as 6% to 8.52 euros in Frankfurt trading.