Home / World News / Germany stamps authority on Lufthansa with $9.8 billion lifeline

Germany stamps authority on Lufthansa with $9.8 billion lifeline

Berlin, which has set up a 100 billion euro fund to take stakes in companies struck by the coronavirus crisis, says it plans to sell the Lufthansa stake by the end of 2023

The tail of a Lufthansa airplane is seen outside a Lufthansa Technik maintenance hangar at Malta International Airport outside Valletta, Malta.Photo:Reuters

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Under the bailout package, details of which were earlier reported by Reuters, the government will also inject 5.7 billion euros in non-voting capital, known as a silent participation.

Reuters Frankfurt/ Berlin

4 min read Last Updated : May 26 2020 | 12:36 PM IST

Germany threw Lufthansa a 9 billion euro ($9.8 billion) lifeline on Monday, agreeing a bailout which gives Berlin a veto in the event of a hostile bid for the airline.

The largest German corporate rescue since the coronavirus crisis struck will see the government get a 20% stake, which could rise to 25% plus one share in the event of a takeover attempt, as it seeks to protect thousands of jobs.

Lufthansa has been locked in talks with Berlin for weeks over aid it needs to survive an expected protracted travel slump, with the airline wrangling over how much control

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