Lufthansa’s German bailout may shrink with rival aid coming in

Germany and Lufthansa are considering cutting back the country’s E9b aid package as the airline group closes in on additional commitments from Switzerland, Austria and Belgium, people familiar with the discussion said. The government is ready to lower the burden for Germany’s taxpayers and is weighing whether to reduce an earmarked E3b of loans to Lufthansa from the state-run Kreditanstalt fuer Wiederaufbau fund, the people said. The German airline, whose empire includes former national carriers in the three other countries, is eager to keep its bailout costs as low as possible, the people said. No decision has been taken as Lufthansa is in ongoing talks to finalize the packages with the three other countries, and discussions with the European Union, shareholders and staff are ongoing, the people said. Lufthansa declined to comment. A spokeswoman from Germany’s finance ministry also declined to comment.<br/>