Lufthansa hopeful on deal for German state aid

Lufthansa said Sunday it was close to a deal with the German government on state aid to ease the impact of the coronavirus crisis. The group, which warns it is bleeding cash and might have to declare insolvency, had appeared to be stalled in its bid for up to E10b in aid, according to a report in the weekly Der Spiegel. But in a note from Lufthansa directors to staff, the company said it has held "intense and constructive exchanges" with the German government on the financial help. "In our view these discussions could be concluded in the near future," it said. "Support from the German state constitutes an essential step towards ensuring our future," it said, as Europe begins to ease measures taken to stem the spread of COVID-19. According to Der Spiegel, the German government is holding out for a stake of just over 25 per cent in the group in exchange for financial aid, which would put Berlin in a position to block strategic decisions by Lufthansa management. The Social Democratic Party (SPD), which includes Finance Minister Olaf Scholz among its ranks, has warned Lufthansa it cannot expect a blank cheque from Berlin. The group's supervisory board is to meet on Monday, and hold an online general assembly a day later.<br/>