Lufthansa to get financial support from Switzerland and Austria

Switzerland and Austria pledged to help Lufthansa with state-backed loans as the airline pursues talks with Berlin over a E9b rescue package. The Swiss government said Wednesday it will ask parliament for 1.275b francs in loan guarantees for Lufthansa units Swiss and Edelweiss. Strict travel restrictions to contain the coronavirus pandemic have brought flights to a near-halt across the world and there is no end in sight for when they can restart, leaving many airlines begging governments for rescue packages. Lufthansa's Austrian airline AUA said Tuesday that it had applied for E767m in state aid, of which a large part should be repayable loans and the remainder grants. An AUA spokesman said these grants were still under negotiation and both Switzerland and Austria attached conditions on their participation in the bailout. "The funds guaranteed by the Swiss government are only to be used for Swiss infrastructure," the government said, adding that the loans would be secured by shares in Swiss and Edelweiss. Dividends or other payments would be forbidden until public assistance has been repaid, it added.<br/>