Europe's leading global airline is losing $1 million an hour and needs a bailout

Lufthansa is locked in crunch talks with the German government on the terms of a rescue deal, as it fights to avoid bankruptcy while keeping state influence at bay. Europe's leading global airline group held its first virtual annual general meeting on Tuesday, unveiling a E1.2b ($1.3b) Q1 loss and painting a bleak picture of the outlook for global aviation. Lufthansa declined to answer questions from shareholders regarding details of its bailout discussions. It said last week that the Swiss government had agreed to guarantee 85% of a $1.5b loan package for its Swiss carriers. The group also owns airlines in Germany, Austria and Belgium. Lufthansa is reportedly negotiating a E10b bailout with Germany that would give the government 25.1% of the company and a seat on its supervisory board. The company said in a letter sent to staff on May 3 and said that it believes talks "can be brought to a quick conclusion." "The support of the German government would be a decisive step for our future viability," the executive board wrote in the letter. "Competitiveness and investment capability continue to be important prerequisites for this." Analysts are worried that government interference could hamper Lufthansa's ability to quickly execute a planned restructuring program, which would trim its fleet by 13% and could result in as many as 10,000 job cuts. CEO Carsten Spohr stressed Tuesday that Lufthansa wants to preserve its "entrepreneurial freedom of decision and action."<br/>