Lufthansa expects to reach deal on German government aid soon

Lufthansa’s talks with the German government over a multi-billion euro aid package are coming down to how much the state will profit over coming years for rescuing Europe’s biggest airline, people familiar with the matter said. While Lufthansa CEO Carsten Spohr said this weekend that negotiations are moving toward a conclusion, the sides are still haggling over financing terms, according to the people. Germany wants to be sure it emerges better than even from a bailout after losing money when rescuing banks following the 2008 financial rout. Lufthansa fears that will make it harder to weather a extended travel slump and compete with airlines that have received more generous terms for state assistance. Negotiations concern loans, credit guarantees and a state equity injection, split between shares with voting rights and a so-called silent participation limiting the government’s day-to-day say. Officials are pushing for a 9% guaranteed dividend for the latter, a figure the airline says is too high, the people said. An agreement is still expected to be in place in the next few days or early next week, they said. <br/>