BI: German government to bail Lufthansa out of bankruptcy with nearly $10bn state aid

BUISINESS INSIDER reports:

– The Covid-19 crisis has brought Lufthansa to the brink of insolvency.

– The airline recently called for state aid but, until recently, had categorically refused to allow the state any say in the company’s future.

– At a closed meeting on Monday afternoon, a rough agreement was reached, according to an investigation carried out by Business Insider.

– The state will intervene and provide nearly $10 billion and will receive collateral in return.

The company will take the money but the state won’t get a say: this is a concise summary of what Lufthansa’s Executive Board, headed by CEO Carsten Spohr, has been telling German politicians in the past few weeks.

According to an investigation by Business Insider, Lufthansa is now so up to its neck in water, the airline’s management had to come to an agreement with the German state on the afternoon of Monday, April 27, after hours of negotiations.

The agreement entails the state using $10 billion to bail out Germany’s last remaining international airline.

But the state should not be given a say in corporate policy, insiders say.

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