Lufthansa running out of bailout road as Germany sets terms

Germany’s government has set out a unified position on a bailout for Lufthansa, with the airline group expected to accept a significant state stake and veto rights in exchange for a multibillion-euro package of assistance, according to people familiar with the matter. While details are still being negotiated, the economy and finance ministries have ironed out disagreements that dragged on for weeks, the people said, asking not to be named discussing the deliberations. The plan foresees Germany taking a least a 25% stake in the airline and receiving at least one seat on the firm’s supervisory board, the people said. The assistance could run to E10b. The size of Germany’s equity stake, whether part of it will be under a so-called silent participation that limits state control, and how many seats the government will have on Lufthansa’s supervisory board are still subject to negotiations, according to the people. Talks between the airline and the government are expected to stretch into next week, the people said. “The future of Lufthansa is being decided in these days,” Lufthansa CEO Carsten Spohr said, according to the text of a speech to be given at the company’s annual meeting on May 5. “It is about avoiding an insolvency with the help of the governments of our four home markets.”<br/>