Lufthansa aims to finalise E10b rescue package next week: Sources

Lufthansa aims to finalise a state aid rescue package worth up to E10b (US$10.8b) next week after the coronavirus crisis forced it to ground almost all of its planes, people close to the matter said. The package will consist of equity from Germany's new economic stabilisation fund (ESF), state-guaranteed loans from Germany and debt supplied by Austria, Switzerland and Belgium, where Lufthansa subsidiaries are based, they added. Lufthansa is in intensive negotiations with the govts regarding various financing instruments to secure the group's solvency in the near future, Lufthansa said as it reported a Q1 loss of E1.2b Thursday. CE Carsten Spohr this month said that Lufthansa would seek state aid in Germany, Austria, Switzerland and Belgium, citing cash burn at a rate of E1m per hour. <br/>