BERLIN (Reuters) – The Federal government has agreed the final details on a rescue package for the airline Lufthansa (LHAG.DEMedia reported on Wednesday.
FILE PHOTO: A closed Lufthansa ticket counter is seen at Frankfurt airport, as the spread of the corona virus disease (COVID-19), and departs in Frankfurt am main, Germany, April 13, 2020. REUTERS/Ralph Orlowski/file photo
Lufthansa is keen to tap to help Germany’s economic stabilization fund, the weather, the corona-virus-pandemic, and what is expected, that a stricter travel slump.
The Minister responsible for the final touches on the rescue package, and an officer was on the way to Frankfurt, to seal the deal with airline executives, the magazine der Spiegel reported.
The Federal Ministry of Finance and the Ministry of economic Affairs, both declined to comment. A Lufthansa representative, rejected, a statement about the media reports.
German Chancellor Angela Merkel said on Wednesday she expects you to be an agreement on a rescue package for the Lufthansa-son, but did not elaborate.
In a separate report in the Handelsblatt newspaper, government sources quoted as saying Berlin had agreed to a three-stage model, with a total of 9 billion euros ($9.88 billion Euro), as well as a 3-billion-euro loan from the state KfW bank.
In addition, the government will take a direct share of 20% at Lufthansa and a convertible bond to the value of 5%, plus one share, with the government, gaining two seats in the Supervisory Board.
The airline said on may 7, to ensure that it is negotiations over a 9-billion-euro rescue package with the German government about their future, confirming an earlier Reuters report.
Lufthansa said then that the package included a non-voting capital as a component, also known as the so-called silent participations, a secured loan and a capital increase, the leave may, the government published its significant investment in up to 25% plus one share.
The Handelsblatt said the agreement had to be approved by the government coalition, which would then give we the Lufthansa agree to the following two days.
Reporting by Michael Nienaber, Emma Thomasson and Madeline Chambers in Berlin; editing by Matthew Lewis