The German government Monday approved a $13.7 billion (€9 billion) bailout package for flag carrier Lufthansa in return for an initial 20% stake in the airline.
The deal, which still needs to be approved by the European Commission, will give the government two seats on Lufthansa's supervisory board, but these should be taken by "independent experts," which would appear to exclude political appointees.
The state says it intends to sell its 20% stake by the end of 2023.
German finance minister Olaf Scholz said: “The support that we’re preparing here is for a limited period. When the company is fit again, the state will sell its stake and hopefully … with a small profit that puts us into a position to finance the many, many requirements which we have to meet now, not only at this company.”
The bailout will help save up to 10,000 jobs in the face of a collapse in demand due to coronavirus travel restrictions.
Rival Air France-KLM agreed to $10.6 billion (€7 billion) in aid from the French government earlier in MAY and is poised to confirm a further $6 billion (€4 billion) from the Dutch state.
Anna Kroupina Journalist
Anna is OJ's newest member and she joins the team as a writer/reporter. She co-writes the daily news and covers events. Although she's new to the industry, pursuing a career path in travel/tourism has been a goal since her first family road trip to the Florida Keys sparked a desire to discover the world and this exhilarating, fast-paced industry.