A financial package whose aim is to provide temporary financial relief for Lufthansa has been devised by the German government, and accepted by the airline.
Worth €9 billion, the rescue plan will see the German government inject €5.7bn into the airline while also acquiring a 20% stake in the company. This will eventually be sold on: "When the company is fit again, the state will sell its stake and hopefully ... with a small profit that puts us into a position to finance the many, many requirements which we have to meet now, not only at this company,” Minister Olaf Scholz said in a press conference on Monday.
"The support that we're preparing here is for a limited period," he insisted.
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With the deal sealed, the rescue plan will allow 10,000 airline employees to retain their positions after their livelihoods were threatened due to the financial consequences of the pandemic.
Although operating at a profit in pre-COVID-19 times, Lufthansa was forced to ground GermanWings, one of it’s low-cost carriers, after travel restrictions and national lockdowns were introduced to battle the spread of the virus.
This is not the only company the German government is assisting through these turbulent times. Indeed, it has set aside €100 billion to help other embattled companies in similar situations.