Pivotal Lufthansa bailout snared in government tangle

Lufthansa spent the last two decades forging a business empire that stretched across the wealthiest countries of continental Europe. Forced into retreat by the coronavirus crisis, it’s now bogged down by ties to four governments as it seeks a multi-billion euro bailout. The airline warned late Thursday that it’s running low on cash and won’t be able to survive without state aid from Germany, Switzerland, Austria and Belgium. Each of those countries contributed former national carriers to the sprawling airline group, and negotiations are ongoing for an aid package that could total E10b, according to people familiar with the matter. The talks are snared on how much the German carrier will receive from each country, and how much sway politicians will have in the airline after the cash is handed over, the people said. Chancellor Angela Merkel, Finance Minister Olaf Scholz, Economy Minister Peter Altmaier, Transportation Minister Andreas Scheuer and Lufthansa CEO Carsten Spohr will hold crisis talks on a rescue package at the beginning of next week. The German government views Lufthansa as a systemically important airline and won’t allow it to fail, a government official said on Friday.<br/>