Pivotal Lufthansa bailout snared in govt talks

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 last 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. 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. “We need to find a solution which will not lead to a permanent politicisation of Lufthansa, ” said Christian Democratic Union lawmaker Joachim Pfeiffer, who is involved in the negotiations. Lufthansa fell as much as 8.4% in Frankfurt, and is now at its lowest in 17 years. “Right now, it is quite literally state aid or bust, ” said Bernstein analyst Daniel Roeska.<br/>