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The German government will help Lufthansa with nine billion euros in state
aid. In return, the government will receive a blocking minority interest and a
seat on the supervisory board. Business Insider reports this on Tuesday.
Reuters reported moments later that there is no final agreement yet.
 
Lufthansa and representatives of the German government are said to have
reached an agreement on Monday for the emergency aid package. According to
Business Insider, CEO Carsten Spohr wanted to seal the deal on Tuesday with
Chancellor Angela Merkel and Finance Minister Olaf Scholz, but according to
Reuters, that is uncertain because no final agreement has yet been reached.
 
Due to the corona crisis and global travel restrictions, Lufthansa has the
majority of the fleet aground. The company is currently losing approximately
one million euros per hour. Without state aid, the company would go bankrupt
within a few weeks.
 
Last week, Lufthansa Group already announced its urgent need for state aid
when presenting the quarterly figures. The Lufthansa Group lost 1.2 billion
euros in the first quarter on sales that decreased by 18 percent to 6.4
billion euros. In March, sales even fell by 47 percent.

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