Lufthansa sets new goal of bailout deal before Merkel’s exit

Lufthansa has abandoned a goal of repaying its state bailout before German elections this month, leaving the airline group at risk of losing control over its return to normal operations after the Covid-19 crisis. Europe’s largest carrier will seek to secure a deal on winding down the state’s 20% stake with Chancellor Angela Merkel’s government before she leaves office, CEO Carsten Spohr said. Lufthansa had earlier sought to pay off the remainder of the E9b aid package before the Sept. 26 vote that will determine her successor. The new timetable threatens to put Lufthansa at the mercy of political developments and an unpredictable coronavirus outbreak as the airline tries to loosen constraints that came with last year’s bailout. Merkel’s conservatives have lost ground to Olaf Scholz’s Social Democrats, a party that would likely hold on to the Lufthansa stake for longer. Lufthansa has abandoned a goal of repaying its state bailout before German elections this month, leaving the airline group at risk of losing control over its return to normal operations after the Covid-19 crisis. Europe’s largest carrier will seek to secure a deal on winding down the state’s 20% stake with Chancellor Angela Merkel’s government before she leaves office, Chief Executive Officer Carsten Spohr told reporters at a media event in Frankfurt. Lufthansa had earlier sought to pay off the remainder of the E9b aid package before the Sept. 26 vote that will determine her successor. The new timetable threatens to put Lufthansa at the mercy of political developments and an unpredictable coronavirus outbreak as the airline tries to loosen constraints that came with last year’s bailout. Merkel’s conservatives have lost ground to Olaf Scholz’s Social Democrats, a party that would likely hold on to the Lufthansa stake for longer. <br/>