German airline Lufthansa has accepted a $9.8 billion rescue deal with Berlin, media reports said. With the new deal, Berlin’s government would become a shareholder with a 20 percent stake in the airline.
It is reported that the government’s share could increase to 25 percent plus one share in an attempt to acquire the airline. With that, it could save a significant number of jobs in the company.
Finance Minister Olaf Scholz, told the media, “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.”
As part of the bailout package, the government will inject 5.7 billion euros in silent participation. Also, Lufthansa is expected to receive a 3 billion euro three-year loan from KfW and private banks.
It appears that the airline’s operations are healthy and profitable. However, the protracted pandemic has caused unforeseen trouble in recent months. In fact, Lufthansa is not the only airline to have received a rescue package from the government. Other airlines including Franco-Dutch Air France-KLM and US carriers American Airlines, United Airlines and Delta Air Lines have also requested state aid after the pandemic hit global aviation.